Daft Property - Irish Property News

Number of mortgages in arrears hits new peak of 14pc... ONE in seven mortgage holders is now in arrears, according to calculations by a leading ratings agency. Large numbers of these homeowners are understood to be avoiding getting into talks with their banks on restructuring their mortgages. Moody's also said house prices would fall another 20pc. The rating agency said its calculations show 14pc of residential mortgage holders are now in arrears, which works out at 107,000 households. This is a new peak, it said. Figures released by the Central Bank last month showed 10.2pc of mortgage holders were three months or more behind on their payments. "The steep decline in house prices since 2007 has placed the majority of borrowers deep into negative equity," it said. "Irish house prices have already fallen by 49.9pc between September 2007 and April 2012, and Moody's expects that house prices will fall a further 20pc from today's levels." Central Bank figu...

Number of 'ghost estates' hits 2,881... THE NUMBER of “ghost estates” has increased, figures to be published next month will show. Colm Ó Ruanaidh, senior adviser on social housing at the Department of the Environment, told the housing policy conference that the count for this year was not yet complete, but semi or unoccupied housing developments showed there had been an increase from 2,846 last year to 2,881 this year. A departmental spokesman said Mr Ó Ruanaidh was working from “raw data” that would be finalised and published next month. “The additional 35 developments constitute an increase in the number of dwellings in ghost estates from 179,230 last year to 179,900,” Mr Ó Ruanaidh said. Some 230 unfinished developments have met the criteria to benefit from a €5 million fund to address immediate safety concerns. A guidebook for residents in unfinished estates is to be published in coming weeks. Marian Finnegan, chief economist with Sherry FitzGerald, said the c...

Nama might prove 'laboratory' for EU, leaked cable said... THE FIANNA Fáil-Green government considered the National Asset Management Agency (Nama) “might prove to be a laboratory” for other European Union states faced with banks on the brink of collapse, according to the latest batch of diplomatic communications published by Wikileaks. Ireland’s permanent Ambassador to the EU, Rory Montgomery, made the comment to the US ambassador to Ireland, Dan Rooney, at a meeting in Brussels in September 2009. Mr Montgomery revealed the EU “was watching closely” the establishment of Nama. At the same meeting he said that year’s budget would focus on cuts in public sector pay. The cable reports Mr Montgomery’s view was that “Ireland [was] paying too many civil servants too much to provide public services that could be provided for much less.” Mr Rooney met EU commissioner Charlie McCreevy on the same trip. Mr McCreevy had advised the Fianna Fáil-Green coalition to act quickly in es...

Finding new ways to solve the personal debt crisis Many homeowners have trouble making monthly repayments but there are ways to ease the burden... WITH about 86,000 homeowners now struggling to repay their mortgage, and four times more debtors seeking free legal advice than did in 2007, Ireland is in the midst of a personal debt crisis. We need solutions, and we need them quickly. What could they be? Write off mortgages A homeowner who is battling to repay a massive mortgage should be allowed to write off some of their loan, according to Michael Dowling, spokesman for the Independent Mortgage Advisers' Federation. This should make their mortgage more affordable and prevent them from either having to sell their home at a lower price than they paid for it -- or having it repossessed. "We need long-term solutions," said Dowling. "No one should be asked to leave their family home. But to make the debt-forgiveness solution palatable to other homeowners who are...

IRISH house prices plummeted at almost the fastest rate in the world last year, new research has revealed. Ireland was placed in 48th position in a rating of house growth across 50 countries for last year, with prices dropping by 11.9pc. Russian houses plummeted by as much as 13.7pc in the same period while Malta was also above Ireland's fall at 14.1pc. Meanwhile, one of the fastest growing economies in the Dubai house prices fell by 8.2pc for the year, according to the survey by Knight Frank. Asia remains the top-performing continent with a recorded 8.4pc growth over the last 12 months, but even this figure is a significant fall from 17.8pc a year earlier. Performance Head of residential at Knight Frank, Liam Bailey, said that at first glance at the results table, it would suggest it's business as usual, with Asian countries firmly implanted at the top of the table and both Europe and North America languishing behind. "But there are a few less predictable re...

Repossessions to surge as mortgage crisis deepens... 25,000 families now more than a year behind on their repayments. MORE than 25,000 families in Ireland are in turmoil this weekend, living with the terror of being more than a year behind on their mortgages and past the point where they can ever hope to pay back the money they owe. The shocking finding follows an analysis of figures compiled by the Central Bank of Ireland and released without fanfare during the high profile visit of Queen Elizabeth and on the day that former Taoiseach Dr Garret FitzGerald died. The figures show that more than 35,000 people are now over six months in arrears on mortgages worth more than €7bn. But leading mortgage expert Ciaran Phelan of the Irish Brokers' Association has analysed the figures and says the situation is even worse than that portrayed by the regulatory authority. He says even a "back-of-the-envelope" assessment of the latest statistics indicates that 25,000 of tho...

Ireland's Property Market: A Fallen Star? Ronan Lyons, Daft's in-house economist, commenting on the latest Daft research on the Irish property market... When we look back at 2008 in a few years' time, I think it's fair to say we will regard it as the annus horribilis for Ireland's property market. In late 2006, we issued a report which was the first to spot a slowdown in the property market. At the time, it was our view - unpopular though it was - that rising interest rates and high levels of supply would lead to a levelling off in house prices. This turns out to only have been the start of the story. Bursting onto the world stage at the end of the 1990s, Ireland was heralded as an economic phenomenon and rapidly became a global superstar and poster-child for economic development. But recently it looks like it's all just falling apart. Nowhere is this more evident than in Ireland's housing market - until recently the engine of Ireland's economic growth. ...

2008 Review: AGENT SPEAK: Jargon busting guide - revised for the recession... BROWSING ON the internet, I came across a very helpful guide to property and financial jargon which was thoughtfully provided by Sherry FitzGerald. I felt obliged, however, to write up a revised version, which might be more suited to today's virtually non-existent property market. Approval in principle : valid for no longer than 14 days from date of issue. Appreciation : no longer applicable to Irish property. Arrears : the term most frequently used this year. Asking price : well, you can always ask, but don't expect to receive. Auction : an extraordinary event where people actually competed with each other in order to buy a property. No longer necessary. Auctioneer/estate agent : a dying breed (from starvation). Arrangement fee : another bank scam. Best and final offer : that's all you're getting. Actually, no, cut that by €50,000. Bidding : a reckless act. Booking deposit : the money the dev...

We're getting back to basics in these recessionary times... ANYONE WHO, like me, has only recently learned to appreciate the wonders of Lidl will not be surprised by Ulster Bank's recent revelation that spending took the biggest nosedive since 1983 in the first three quarters of this year and Irish consumers continue to spend cautiously in the run up to Christmas. There was a time when the stark lighting, the anaemic decor (would a cheery sunburst yellow colour scheme be out of the question Mr Lidl?) and that curiously earthy smell once you hit the door (what is that?) was enough to have some of us running to the more sweet smelling Superquinn for cover. But our priorities are changing and we're discovering that rampant parsimony has its thrills. The psyche of a nation, formed over 10 years of profligate spending, is under review and it's not just property we're holding back on, but household goods, which Ulster Bank attributes to the weakness in the housing market,...

Budget will 'turn recession into depression' ... POLITICAL REACTION: Fine Gael deputy leader and spokesman on finance Richard Bruton said this evening the Budget announced by Brian Lenihan today will "threaten to turn a recession into a depression". “This is a Budget that is all about extra taxes for ordinary families, about extra charges for people, and about cutting capital spending,’’ said Mr Bruton. “You are looking to make it tougher for people who are struggling to get by,’’ he added. “There is no sign that you are aware of the pressure on people from fuel bills, the pressure on people who have lost their jobs.’ Labour leader Eamon Gilmore said it "mercilessly targets middle income families". Speaking shortly after the Minister for Finance presented the Budget in the Dáil, Mr Gilmore said Mr Lenihan had failed to take any significant steps to protect the poor and vulnerable in the face of the worst recession facing the country for decades. “Despite ...

State of emergency... BRIAN COWEN last night tried to get a grip on the country’s escalating economic crisis by calling an emergency October budget that looks primed to inflict deep spending cuts. The unprecedented decision to advance the budget — the centrepiece of the Dáil year — by almost two months to October 14 was sparked by shock in government circles at the collapse in tax revenues over the summer that has left the country heading for a €6 billion deficit by the year-end. The cabinet made the dramatic move as unemployment surged to a 10-year high as dole queues swelled by record amounts for the fourth month in succession. Finance Minister Brian Lenihan said the Government’s priority was to “curb spending” and this would be achieved through a “balance” of taxation, borrowing and cuts as he warned the country faced the worst economic conditions since the late 1980s. “We cannot let our state to drift into fiscal unsustainability. We have to take corrective action,” said Mr Lenihan...

The end of July reports show... Number signing on Live Register rises by 10,600 The rise in the number of people claiming unemployment benefits over the last year has increased at the fastest rate since records began over 40 years ago. In July, 10,600 people joined the Live Register bringing the seasonally adjusted total signing on to 226,000, on a seasonally adjusted basis, according to figures released by the Central Statistics Office this morning. The monthly increase is the second highest on record after March of this year. The number on the register is the highest in a decade. Last month’s increase lifted the standardised unemployment rate to 5.9 per cent, the CSO said. Over the last 12 months the number of people seeking unemployment benefits has risen by over a third with 63,647 people joining the register. In July 6,700 males and 3,800 females joined the register. Leo Varadkar, Fine Gael enterprise spokesman accused the Government of losing control of a deteriorating economic...

The 210 apartments in the nine-storey Gasworks building, in Ringsend near Landstown - Dublin 4, have been vacant since they went on sale two years ago. Developer Liam Carroll has since got the OK to convert the Gasworks apartments into a 520-bed hotel. However local residents are saying "no" to the plans and have appealed the proposal. Their main concern seems to be they will have to pay for the upkeep of common areas - hotel guests will not etc. The original promotion of the apartments, 2 years ago, by Hooke & Mac Donald mentioned: ...One of the most interesting and significant residential projects ever to be carried out in Dublin was launched on the market... A familiar feature of the South Dublin skylinehas been transformed. The striking metal cylinder of the former gasholder at Barrow Street creates a frame within which a stunning new nine storey block of large two bedroom apartments has been built. The curves of the building complemented by its dramatic glass fa...

Sign of times as Lidl eyes Habitat store... Upmarket furniture store Habitat could be replaced in the city centre by a discount supermarket. German retail giant Lidl is one of only two businesses -- the other an overseas bank -- pitching for the lease of the massive store, located off the bottom of Grafton Street on College Green. Crunch Lidl and fellow discount chain Aldi have seen a significant increase in business since the effects of the credit crunch. They have also been helped by a recent National Consumer Agency survey. The research found that a basket of 28 own-brand goods was more than 50pc cheaper in Lidl than in Tesco or Dunnes Stores. Several leases available on Grafton Street have been slow to sell because of the deterioration in consumer spending. Property adviser CB Richard Ellis has predicted that business premises on the high street will only sell when values have been cut by 50pc. Lidl is not the only big-name trader to have checked out the former Habitat store. Nearb...

Plan to redevelop Clarence Hotel approved... An ambitious plan to redevelop the Clarence Hotel on Dublin’s Wellington Quay has been approved by An Bord Pleanála. The scheme, devised by architect Norman Fosteer, involves demolishing the hotel and adjoining buildings on the quay, retaining their façades and constructing a much larger hotel arranged around a dramatic atrium and topped by a flying saucer-style roof . The owners of the hotel, who include U2's Bono and the Edge , welcomed the Bord’s decision in a statement this afternoon. “We are delighted that An Bord Pleanala has given us the green light for Norman Foster's design for The Clarence. …We believe it's great news for Dublin and for Temple Bar in particular, where we've been working for over 20 years and where a hotel has been trading on The Clarence site for 177 years," it said. The Department of the Environment, Local Government and Heritage had objected to the scheme, saying it could set a precedent for ...

The Irish Examiner mentions in a report today: SURGING unemployment and sliding tax returns helped blow a €5.6bn black hole in Government finances last night... The opposition’s ire focused on Mr Cowen, who had been Finance Minister up to May, rather than Mr Lenihan. Labour leader Eamon Gilmore accused Mr Cowen of “walking the country into the red”. Fine Gael finance spokesman Richard Bruton said Mr Cowen had to take personal responsibility for the scale of downturn as he had introduced four inflationary budgets designed to meet the needs of the “electoral cycle, not the economic cycle”. These budgets had used the unsustainable revenues from the property boom to “ramp up spending increases” at twice the rate of growth of the economy, Mr Bruton said. The Irish Independent paints a similar gloomy black hole picture... MINISTERS will have to cut €500m from their spending plans to pay for increased dole payments, as the property slump blows a €3bn black hole in their tax take. Departmen...

Down, Down, Get On Down... So just how low can it get? Irish Times Property News: "Deep price cuts in end-of-season sales. WITH summer holidays looming and a glut of €1 millon plus homes on the market, and the realisation is finally setting in that a drastic price cut could be required to secure a buyer. While the property market has seen price "adjustments" across the board, heavy discounts are now offer in some cases. In the six properties listed here, the average price cut is 33.4 per cent. The slowdown has been particularly tough on high-end properties, which have a smaller pool of potential buyers. Price drops of over 30 per cent can mean upwards of €1 million being shaved off the asking price. KILLINEY: -31% EIRENE ON Marino Avenue East in Killiney, Co Dublin, came on the market in March at €6 million. Now three months later Savills HOK has cut the asking price to €4.15 million for the two acre property which is a stone's throw from the Dart and beach and may h...

I read in the Irish Independent today that in Dublin's Temple Bar, once a property hotspot, that..." prices are beginning to drop: a spacious second floor, period-style one-bed, renovated 15 years ago on Parliament Street, with views of the Liffey and the evening sun, has been on the market for two months and the price is down from €365,000 to €345,000. At the Friary, off the cobblestones on Fownes Street, a one-bedroom west-facing apartment over Luigi Malone's restaurant is €410,000, but expected to drop. In Temple Bar Square, the quarter's heartbeat, a two-bedroom apartment, with access to a precious roof terrace and views of the city's skyline has been on the market a year and is available for €450,000. In the tenant zone, plans are in the early stages to refurbish and upgrade some of derelict Crampton Court apartments with its little garden, car-parking spacess and views overlooking the Liffey. And to rent? Despite so few properties being available, bites are s...

One of my favourite sites about what's happening with the Irish Property scene is The Property Pin - thepropertypin.com. "... thepropertypin.com was established to discuss the existence of a damaging speculative price bubble in the Irish housing market" ... The Property Pin is " not here to cheerlead the crash but rather to illuminate, to provide balanced discussion and to help prevent another property bubble from occurring in the future." A great forum - well worth a visit!

Parade Video: More daft news...The bubble has burst - The Irish housing market and economy is now on major downturn, property prices are crashing, unemployment the highest in years, recession looms, etc - but, hey, let the party continue! Yes it's now "St Paddy's 5 Days" over here - Ireland's National Holiday, St. Patrick's Day, now runs from March 13th to 17th! Enjoy!