Office rents in the capital are expected to reach 2008’s peak levels by 2018. Prime rents are expected to reach €65 per sq.m for 2017 vs just €28 per sq.m in 2012.
Dublin currently has 68 cranes (as at 1 September) which is twice the level of cranes reported on 1st Feb 2016. Construction is mainly south of the river with 54 cranes sighted.
The Cairn group has reported a 191% rise in gross profit during H1 2017. Revenues for the same period grew 157%. The group points to their research which says that new house prices have risen less than 3% since the introduction of the HTB. Inflation in the property sector is running at 12%.
Permanent TSB is prepared to allow certain buy-to-let investors sell their properties and write off any remaining debt. The offer is expected to be extended only to those who genuinely are not able to repay all that they owe. Bad debts on the bank’s books accounts stand at 28%.
The amount of houses for sale in Ireland fell 9% in the 12 months to July equating to just 25,100. This is just 1.3% of the total private housing stock in the state and is 50% lower than those for sale just 7 years ago. This lack of stock can only lead to property price inflation which is now at almost 12%.
The Society of Chartered Surveyor’s Ireland have said that it will be 9 more years before the housing demand is met. Taxes and levies can account for up to 18% of a purchase price according to the group and they are calling on major government implementations to tackle the crisis sooner.
There are just 29% of first time buyers who are aged under 30 as more and more people are finding it hard to secure a property before they are 30. 40% of FTB’s are aged between 31-35. In London, 40% of first time buyers are aged 30 or under. The reason given for this dramatic difference is because Ireland is facing net emigration with London facing net inward migration.
A new report by REA shows the average 3 bed semi-detached home has risen 3.1% during Q3, and by 11.2% nationally for the last 12 months. Dublin for 12 months showed growth of 15.6%. Cork city showed slow growth of just 5.1% in the year.
Construction Industry Federation President, Dominic Doheny has said that ‘significant price inflation’ is vital to make house building attractive in the Midlands. Homes in Offaly and Westmeath average out at €170,000 with Laois coming in at €160,000.
Almost 4,000 people received mortgage approval during August 2017. The value was €842m with 50% of approvals going to FTB’s, and over 30% to mover’s. Those switching or remortgaging accounted for most of the remaining approvals. The average mortgage now for an FTB is €211,000 which represents an 11% increase on the previous year.