Competitively priced houses attract buyers
According to the Chartered Surveyors of Ireland (SCSI) annual property report, buyers remain in the Irish housing market, but only for properties that are perceived to be excellent value. The report said that unrealistic asking prices were still stalling the market.
“Conversely, when asking prices are reduced to realistic levels, vendors are recording reasonable activity in the sector. Cash buyers remain the principal cohort of those purchasing new residential homes in the property market,” said the report.
Overall, the survey found that sales of new homes remained extremely low across all regions last year, with some respondents saying the new homes market was “almost non-existent”.
Prices also continued to fall for second-hand homes. The price of a second-hand, three-bedroom, semi-detached house fell by 12.6% in Dublin last year, compared to a decline of 14.3% and 18.8% in 2010 and 2009 respectively.
In Leinster, the average selling price for the same house declined by 16.8% last year, compared to declines of 17.1% in 2010 and 19.8% in 2009.
In Munster, the decline of 9.3% in 2011 for this house type was less severe than 2010 and 2009, when values declined by 15.2% and 17.9% per cent respectively.
The survey found there continued to be solid levels of activity in the rental market into 2011 and was generally upbeat about the prospects for the residential rental sector over the short to medium term.
Respondents believed that the residential rental market last year was “holding its own as people continue to rent instead of purchasing”.
However, the study found that activity in the commercial property market remains low, primarily due a lack of confidence, difficulties in accessing finance and the uncertainty in the market about a potential retrospective banning of upwards only rent reviews in pre-2010 leases.
Agricultural land performed well last year, primarily due to cash buyers and farmers re-entering the market.
Commenting on the survey, SCSI vice-president Roland O’Connell said confidence and access to finance remained the key issues in the residential property market.
“Until we see the financial institutions lending to qualified buyers, we will not see a recovery in activity levels in the property market,” he said.
