The latest Daft rental report shows that rents have increased nationally by 11.7% from January to September 2016. In Dublin, rents are now approximately 10% higher than their previous peak of 2008.
Plans are afoot by Dublin City Council to increase spending on social housing by 90% over the coming years to €800m. The plans are to be submitted to DCC on Nov 14th for consideration. 20% of the budget is due to be spent on modular housing. 1,780 houses are to be provided by new builds, refurbishment and buying up other homes in 3 years. This has changed from the 824 during the last 3-year plan. Funding is to be paid upfront with a spend of €350m predicted for 2017.
Cushman Wakefield’s report for Q3 2016 shows that YTD, €3.14bn has been invested into the commercial property market in Ireland, with Q3 contributing €310m to that figure. The report also revealed that:
YTD, the retail sector saw the most amount of investment with €1.48bn.
98% of office investment YTD was in Dublin.
64% of capital invested was from overseas.
The Central Bank reviewed its mortgage lending rules and has removed the cap of first time buyers requiring a 10% deposit on purchases up to €220,000 and 20% after this cap. Now, FTB’s need a 10% for any borrowing amount. The new rules kick in from January 3.
The Governments help-to-buy scheme which provides a 5% rebate with a limit of €20,000 will further aid first-time buyers. The help-to-buy scheme is exclusively reserved for new builds however and will run from Jan 3rd to Dec 31st 2019.
The ERSI believes that house prices for Ireland have overcorrected themselves and that ‘housing-related taxes can be expected to recover quite significantly over the medium-term’.
The final quarter of the year recorded a very strong start by the construction sector. The PMI for October grew to 62.3, up from 58.7 in September. This covers total construction activity and was the fastest growth increase in 7 months.
Residential property prices grew 7.3% in the year to September for Ireland. Dublin residential prices grew by 5.4%. When Dublin is excluded, residential prices were 11% higher than the same period in 2015. The Midlands enjoyed the largest growth with an average of 15%. The national index is now 33.1% lower than the peak of 2007. Wicklow, Kildare and Meath are the least affordable places to live after Dublin where mortgages account for 26%, 22% and 21% respectively of after-tax income. The CSO was responsible for the new report.
Sherry Fitzgerald in its Autumn review of the Irish Residential Market reported that the average value of a residential property grew by 1.2% in Q3 which they report brings the overall growth for the year to 4%. There were also 27,800 units for sale in July which was a reduction of 14% compared with 2015.