Daft Property - Irish Property News

The legacy of the boom and the subsequent property collapse have come home to roost in 2012. This is the year the Nama deferred payment scheme was launched, a ghost estate was sold at a distressed property auction, and the country’s most expensive property failed to sell despite a 74 per cent price drop. Here are 10 properties that sum up where we are now ... 1. Walford, Shrewsbury Road Now that the madness of the property boom is a distant memory, it has become apparent that not only was Walford on Shrewsbury Road in Dublin 4 never worth the €58 million paid for it in 2005, it has failed to find a buyer for it, even at the radically reduced price of €15 million. The Edwardian house on 1.8 acres went on the market in September 2011 but was recently withdrawn, presumably because it failed to meet the guide price. When it was sold in 2005, the cachet of the road and the development potential drove rich individuals into a frenzy, pushing the price substantially ove

No magic bullet for banks' property crisis... It is going to take more than a decade to unwind the excess property assets financed by the banks during the noughties THE BANKS in Ireland, including IBRC and Nama, have more than €30 billion of Irish loans relating to property which they need to unwind over the next five to seven years in order to meet the Basel capital adequacy requirements and also repay the temporary ECB loan support. This unwinding process has started by the sale of overseas assets and loan books but is mainly outstanding in Ireland. Can this deleverage be achieved? What will be the timescale and what will be the nature of the property market during the process? Should the Government provide further help to the industry? These are key questions for all close to the banking and property industries. In a comprehensive discussion note* I have tried to join the dots of the many intertwining factors. I have drawn on two recent studies on the overall European property

Charlie Haughey's beloved Kinsealy estate on the market for a knockdown €7.5m... FORMER Taoiseach Charlie Haughey's Abbeville mansion has gone on the market for a fraction of the €45m he sold it for a decade ago. Abbeville, in north Dublin, now has an asking price of just over €7m - after the company that owns it went into receivership. The former Taoiseach sold the property with stud farm in 2003, and was believed to be under pressure to sell as he negotiated a €5m settlement with the Revenue Commissioners at the time. The new asking price is 16.7 pc of what Haughey sold it for a decade ago. However, the purchaser, Joe Moran's Manor Park Homes, subsequently went into receivership after Bank of Scotland Ireland sought to recover outstanding debts. Receiver Tom Kavanagh selected estate agents Savills from a number of agents whom he asked to advise on the sale of Abbeville. The estate appears in today’s Irish Times property section and is described as: “A magnificent Gando

LAST WEEKEND estate agents cheerfully reported that the “top end” of the residential market was showing signs of improvement, as, since the beginning of the year, they had sold 50 houses at €1 million plus and a certain percentage of those sales had even exceeded the €2 million mark. Given that, a mere five or six years ago, well-located but modest three-bed terraced houses were selling for that amount and considerably more, they hardly expected us to jump up and down with excitement at the news. And considering that a certain percentage of these properties would have been purchased within the last decade for approximately three times the figure they have recently achieved, their vendors are unlikely to be thrilled either, since despite selling their home many are probably still up to their necks in debt. But the estate agents did at least confirm that many of the trophy properties are being snapped up by ex-pats, who are now returning to the Irish property market a

Dublin apartment prices now down 62pc, says CSO THE house prices freefall has worsened, with some properties now up to 62pc cheaper than at the height of the boom five years ago. February alone saw one of the largest single monthly falls on record - 2.2pc, a figure surpassed only during two months in spring 2009. Apartments in Dublin are worst hit by the crash, while the overall fall in the value of all properties in the capital is now up to 57pc. The Central Statistics Office also warned that in the last 12 months prices have come down by 17.8pc. That is compared to a 10.8% fall in the year to February 2011. A breakdown of the Residential Property Price Index since the slump hit exactly five years ago showed: - Nationally, the crash has wiped 49pc off values; - Houses in Dublin are down 56pc but apartments 62pc - Outside of the capital, prices are down 45pc on average. Although the CSO does not give actual prices, houses in Dublin were believed to be worth about €43

NCB Stockbrokers said the price of buying a home will fall by at least a fifth in the years ahead as Ireland recovers "from the largest credit and housing bubble in OECD history". The Dublin-based broker calculated that the eventual national decline from peak to trough will be 60pc. Average prices have fallen 47pc so far which implies that prices must fall by at least another 20pc before hitting rock bottom. "The boost from domestic demand will not be material until 2013. Unemployment, currently 14.3pc, will remain above 10pc until 2016," NCB economist Brian Devine warned. "As such, there should be no surprise that property prices continue to decline, mortgage arrears continue to rise and retail sales remain weak," he said. Prices in Dublin have already fallen close to this amount with apartment prices in Dublin down 58pc and house prices in Dublin down 54pc. Mr Devine said he remains worried about the fundamentals underpinning the Irish economy but kept

The next Allsop Space Auction will take place on 1st March 2012... Venue: The Shelbourne Hotel Dublin 2 Online Catalogue: Lot     Type     Location     Reserve Price will not exceed this figure 1    Investment Flat    Dublin 1    €135,000 2    Investment Flat    Dublin 8    €120,000 3    Investment Leasehold House    Galway City    €75,000 4    Investment Flat    Dublin 8    €90,000 5    Vacant Freehold House    Drogheda    €100,000 6    Vacant Freehold House    Enniscrone    €55,000 7    Vacant Freehold House    Dingle    €50,000 8    Investment Flat    Dublin 1    €175,000 9    Investment Flat    Blackrock    €170,000 10    Investment Flat    Letterkenny    €19,000 11    Investment Flat    Castletroy    €65,000 12    Vacant Freehold Building    Glenamaddy    €30,000 13    Vacant Freehold Building    Arklow    €55,000 14    Vacant Freehold House    Abbeyleix    €100,000 15    Vacant Freehold Building    Wexford    €170,000 16    Investment Flat    Dublin 22    €70,000 17    Inv

House prices now under €200k, lowest since 2000... HOUSE prices in Dublin have fallen below the €200,000 barrier for the first time since the early months of 2000. Values fell by almost 17pc last year - the fastest annual decline in almost two years, official figures have revealed. The average cost of a home is now about €165,000 based on prices at the peak of the property boom in February 2007 while in Dublin prices have fallen to €198,260. The Central Statistics Office (CSO) has reported prices down by 47pc in the last five years. On top of that huge crash, the record for December shows house prices falling at their fastest rate since February 2010 and a steady increase in the rate of decline all through 2011. The average price paid for a house nationally in February 2007 was euro €311,078, while in Dublin it was €431,000, according to the accepted report on mortgage drawdowns by Permanent TSB. Based on those figures and the CSO's rate of decline, average prices

An oversupply of housing and continued uncertainty are among reasons there is little hope of growth in the residential market... IN SPITE of last month’s budget measures aimed at stimulating the property market, there are six reasons why the market will remain slow to recover. The National Institute for Regional and Spatial Analysis (NIRSA) at NUI Maynooth is one of the few bodies which has been consistently researching the housing market with any degree of rigour. It believes that the budget measures aimed at boosting the residential property market won’t work. Firstly, prices are still falling, or “unwinding”, and most analysis suggests they will continue to fall for up to the next 24 months. No correction can happen until prices stop falling. But even when they do stabilise, there are other issues to take into account. We have a massive oversupply of housing. CSO figures say 14.7 per cent of the total stock is vacant. My calculations say that excluding second a

THERE was further gloom for homeowners after property prices plunged again last month. Prices have been diving now for almost four years. And there is no let-up in sight, with economists predicting prices will keep going down next year. The average residential property has lost almost €150,000 in value since the peak and is now worth around €169,000, according to the latest gloomy figures. Around €232,000 has been wiped off the value of houses and apartments in Dublin as the capital continues to suffer much sharper price declines than the rest of the country. The new figures from the CSO also show that the annual rate of decline in prices jumped to 15.6pc in November. Prices fell by 1.5pc last month and are now down 46pc from the peak of the market in early 2007, the official figures show. The CSO only gives percentage changes, but analysts have calculated that the price of an average property is now just €169,000. This is down from €314,000 when the property bubble was at its m

92% of lots sold by Allsop... THE BIDDING was brisk at the Allsop Space auction of mostly distressed property in Dublin’s Shelbourne Hotel yesterday, as 1,600 people packed into the auction room and spilled out into the bar and lobby of the hotel. A total of 97 of the 108 properties sold under the hammer with a further two selling after auction, raising a total of €11.4 million. Around half were cash buyers – 30 per cent less than at previous auctions. A small group of protesters from a group calling themselves the Anti-Eviction Taskforce held a low-key protest outside the hotel. However proceedings came to a brief halt when one protester stood up in front of the auctioneer and warned about the “ill will” that could affect buyers of distressed property in communities. “Don’t bid then,” replied auctioneer Gary Murphy from UK-based Allsop, before thanking the protestor for his “kind words”. Around a third of the lots are apartments, and one of the bargains of the auction was a

The property dilemma -- to sit tight or cut your losses? It's a dilemma hitting thousands -- especially young couples living in apartments. What do they do -- sell now or hold on? Many of them were frightened on to the bottom rung of the property ladder and now find themselves in a home which is too small for their needs. They are asking themselves if they should take the hit on negative equity, and buy a house which can accommodate a growing family. And even if they do, where will they get the money to buy another property? A few years ago, many had held on in the hope of a soft landing, but now are wondering whether they should bite the bullet and jump. Already price falls of 40pc to 50pc have made family houses much more affordable. However, many couples who sell an apartment that they bought in the boom could find that the sale price is far less than the amount they owe to the bank. Banks are slow to allow them to sell, trade up and carry over the negative equit

Bulldozers send boomtime buildings crashing down... TWO unfinished houses that would have fetched €200,000 each during the boom have been bulldozed because of public safety fears. The unoccupied houses -- and foundations for three more -- were levelled at Church View in Clongeen, Co Wexford, at a cost to the taxpayer of €28,000. Other residents of the estate last night said they were relieved that Wexford County Council had taken action against the developers, Impulse Construction Ltd, by knocking down the houses. They said the unfinished houses had attracted vandals and encouraged anti-social behaviour for some time, and were unsightly at the entrance to the estate. This was the first time houses had been demolished in a new estate in Wexford, but the Department of the Environment confirmed other houses had been demolished on a small number of occasions. Wexford County Council confirmed it has more plans in the pipeline to carry out "public safety works which may involv

Nama 'perks' for builders add to sense of injustice Developers enjoying allowances on top of huge salaries -- and all at taxpayers' expense... DEVELOPERS who work for Nama will be entitled to claim expenses and may even stay in their palatial homes as they draw salaries ranging from €70,000 to €200,000, the Sunday Independent can reveal. Confirmation of the generous allowances being given by the State's so-called 'bad bank' is sure to provoke fresh anger from a public reeling from the revelation by Nama chief executive Brendan McDonagh last Wednesday that his agency has approved salaries of €200,000 for two of its biggest developers. Appearing before the Dail's Public Accounts Committee (PAC), Mr McDonagh also confirmed Nama's intention to approve salaries ranging from €70,000 to €100,000 a year for between 110 and 120 developers on its books before the end of this year. Confirmation of the multimillion euro pay bill has unsurprisingly been met

Building slowdown stalls attempt to complete 2,000 'ghost' estates... WORK TO complete the State’s 2,000 unfinished housing developments has stalled due to a 40 per cent drop in on-site construction activity this year, according to the latest figures from the Department of the Environment. However, the vacancy rate of completed houses on “ghost” estates has fallen by one-fifth since the department published its survey on the extent of the problem last year. In addition, demolition has begun on estates were there is no prospect of completion, the department said. Last October the department published its first national survey of the extent of the ghost estate problem, where developments are left unfinished and only a fraction of homes are occupied. It identified more than 2,800 unfinished or vacant housing estates. A year on, some 700 estates have been completed and a further 100 on which no substantial work had started have been taken out of development, leaving a tot

Nama may be forced to deliver on social housing... THE GOVERNMENT is considering plans to amend legislation that would oblige the National Asset Management Agency (Nama) to deliver more social housing and public amenities. Nama, created to purge banks of toxic property loans, has purchased some €31 billion of loans connected to thousands of residential properties – loans valued at over €72 billion at the height the property bubble. There is frustration in some circles of Government that the agency is not under any formal obligation to provide a “social dividend”. Minister for Housing Willie Penrose is understood to have written to the Attorney General in recent weeks seeking clarity on how Nama’s terms of reference could be changed to give it a broader remit that goes beyond securing the best achievable financial return for the State. Officials fear the agency is too focused on its commercial remit to generate profits and feel the State is at risk of losing out on opportuniti

HOUSE prices will keep falling for another two years and not bottom out until at least 2013, when the average price will have fallen by 60pc to €150,000. The latest prediction comes as National Irish Bank said it would raise its variable rates by up to 0.95pc next month. However, there are renewed hopes that the European Central Bank will signal a cut in eurozone interest rates when it meets tomorrow. A cut in ECB rates may help the collapsing housing market. Ireland is currently experiencing the most violent property crash in the western world. Over the last four years, prices have fallen by 45pc to leave the average asking price at €194,000, according to the latest Daft.ie house-price index. The Central Statistics Office puts the fall from peak at 43pc. Now it has been predicted that prices are set to fall for another two years with the average asking price to hit €150,000 before the market bottoms out, according to research by housing economist Ronan Lyons of Daft. Mr

Here's a tip: if you want to make a sale - try harder... Despite the sluggish market, some savvy sellers are finding buyers for their homes... IT MAY BE a buyer’s market but some properties are shifting, with a few even garnering competitive bids. What are sellers doing to earn that coveted “sold” sign? Homeowners who have been liberated from the “for sale” trenches have some tips. According to the CSO’s Residential Property Price Index, property prices are down 43 per cent nationally from Septembner 2007, but property manager Deirdre Walshe says there are buyers out there,. The market is now is a bit like speed dating,” says Walshe, who once worked in advertising sales. “Your property is competing against thousands of other properties out there so you need to try harder.” She manages her family’s portfolio of 34 properties. This year shesold a two-bedroom apartment and she has put her own family home up for sale. “You need an agent with experience in your area and in y

Ireland’s property boom was the biggest, and our crash the most violent. In a week that brought news of a further drop in house prices, Economics Editor DAN O’BRIEN explains why the market won’t recover any time soon... ‘THE FUNDAMENTALS of the property market are sound, going forward.” This mantra was repeated constantly during the boom by those who believed that no risks were attached to soaring property prices. If any reminder was needed of how badly wrong this view was, it came this week with new official figures showing yet another fall in residential property prices in August. This, according to statisticians, brought the total decline since the property-price peak, in late 2007, to more than 43 per cent, one of the biggest drops in the world. The latest figures from the auctioneer Sherry FitzGerald, also published this week, are worse still, suggesting that average prices are down by a huge 58 per cent since the bubble burst. The belief that property was a one-way bet b

FIRST, some good news. The fall in house prices might be accelerating, but vacancy rates in Dublin are falling. Estate agents Savills have published figures claiming that the number of unoccupied houses in the capital had fallen from 11,000 in March 2010 to just 5,400. According to Savills, people who are unable to sell their houses are successfully renting them instead. The Savills' figures support the findings of last April's census which showed that the proportion of vacant houses in Dublin and the surrounding counties, at 10pc or less, is much lower than elsewhere in the country -- for example over 30pc in Co Leitrim. Despite this chink of positive news, it's back to business as usual for our stricken property market. The latest house-price figures from the CSO weren't bad, they were catastrophic. After a few months during which it seemed as if the worst might be over, house prices plunged by 1.6pc in August and by 13.9pc over the past 12 month. The situ