House starts in Cork fall 98% from 2006 levels

THE construction of just 29 houses in Cork city last year represented a 98% drop from the 1,627 that commenced in 2006.

A steep decline also occurred in Co Cork which saw a decline of 89% in the same period.

The number of houses completed in Cork city and county last year was 3,307, which includes all private housing, local authority and voluntary housing.

This is a decline of 64%, when compared with 2006, in which 9,141 were completed.

The figures were contained in the 2009 annual report on the construction industry in Cork, presented by Construction Industry Federation (CIF) director Joe O’Brien at the annual general meeting of the Cork branch last night.

The report said that such housing commencement figures “illustrate the decline in the housing sector and are a good indicator of activity levels in 2010”.

The CIF estimates that between 40,000 and 45,000 new houses are needed nationally each year to deal with replacement housing, new household formations and reduction in household formation sizes.

Last year there were 26,400 houses completed and the CIF estimates that the figure will drop to about 10,000 in 2010.

The report said that once the market picks up there will be a serious shortfall in available housing, particularly in the major urban areas.

“The underlying demand for residential property remains strong, but because of worries about job security, difficulties in obtaining a mortgage or the belief that house prices will fall even further, there is an understandable reluctance amongst some, to commit to purchasing a house,” Mr O’Brien said.

“With the significant drop in house prices (up to 40% in parts of Cork), low interest rates and the absence of stamp duty, this has brought affordability in the housing market, to the best it has been for years,” he added.

The report also showed there has been a fall in the number of people opting for apprenticeships with 1,115 starting last year compared with 7,114 in 2006.

Meanwhile, at the AGM last night, outgoing chairman of the Cork branch of the CIF Theo Cullinane, from BAM Contractors was succeeded by Harry Hamill of Pierse Contracting.