Housebuilders forced to cut prices further

HOUSEBUILDERS expect the downturn in the Irish new residential market to be deeper and more prolonged than they previously anticipated — forcing them to cut prices even further.

Three out of four housebuilders see lower selling prices this year, according to the latest Merrion housebuilder survey, which also found that half of those surveyed are not building currently and half of these are not going to recommence starts for at least a year.

Over a third of homebuilders said prices are down by 10% to 20% this year compared with last year and no respondent is expecting a price increase this year.