Property Industry
Ireland, or PII, in conjunction with AIB and DKM Economic Consultants published
their quarterly publication Property Watch last week. This report not only brings together key
statistics from across the industry, it also follows recent past trends to allow for more accurate future
forecasting.
One of
the more interesting figures to emerge from this report is the prevailing low
level of housing commencements. Despite
government prompting and greater funding availability, slightly in excess of 2,000
housing unit builds started in the first quarter of 2016. Of those 2,000, 38% were one-off builds. This number falls short of the total level of house building
forecast for the year, which is 11,000.
Even if these 11,000 homes are delivered in 2016, it is still hugely
below the 30,000 that is needed annually for the next few years. It is not good news for home buyers and for
residential investors (unless they are willing to take on 'project ' properties
or refurbishment jobs).
So what
does all this mean for sellers?
Actually, it is good news for sellers who will face less competition for
their home when trying to attract a buyer.
Of course, this is true only if the seller is not trying to find a new
home to trade up or down to. For
investors who are looking to offload some investment properties, there really
has not been a better time in recent years to bring units to the market. While demand does not appear to be growing,
it is consistent and with the stock of available housing on the markets
dwindling every month, prices in most areas are increasing.
Last
month I mentioned how would-be buyers queued from dawn to secure planned - but
as yet, not built - new houses in North Wicklow (Newtownmountkennedy). This obviously creates opportunities for sellers
even in the south of the county and in bordering counties, like Wexford, to
make their homes more attractive now for families who are open to a commute of
up to one hour.
As the current generation of first-time buyers
moves away from the concept of a 'starter home', it now makes sense to consider
a three or even a four bedroom home with garden and proximity to schools within
an hour drive of the capital, over a one
or two bedroom apartment on the outskirts of Dublin's M50 at the same, and
sometimes higher price.
With our
entire planning system facing overhaul this year, in accordance with the
government’s programme for the year, this low level of output is not going to
improve quickly.
This
might be relevant for the owners of run-down houses in the area, who were
previously reluctant to spend the necessary money to get their properties
market-ready. If this applies to you,
just give me a call directly on +353 53
942 1718 and I will let you know about the demand (house-hunters and their
budgets) in your particularly area.
For specific queries or to speak with a local property expert about your
buying and selling needs in Wexford, Wicklow and surrounding areas, contact
Michael, Alan or Eileen Kinsella at www.KinsellaEstates.ie .
