House builds to slump by 14% with Dublin and Cork worst affected

BPFI: 'The final out-turn for this year is likely to be around 18,000 units, some 14% down on the 21,000 units completed in 2019 and on a par with the 2018 level.'
House builds to slump by 14% with Dublin and Cork worst affected

It looks likely the number of houses completed this year will be around 18,000, down from over 21,000 in 2019 and similar to 2018 levels, according to the Banking and Payments Federation Ireland (BPFI).

The number of houses built this year will slump by 14%, back to 2018 levels, with Cork and Dublin the hardest hit, according to an analysis by a banking lobby group.

It looks likely the number of houses completed this year will be around 18,000, down from over 21,000 in 2019 and similar to 2018 levels, according to the Banking and Payments Federation Ireland (BPFI).

Its housing market monitor survey said construction in housing has been "more resilient than anticipated" in the face of the Covid-19 pandemic. 

"Central Statistics Office (CSO) data indicate that house completions fell by as much as 72.7% year-on-year in April 2020 but fell by only 5.9% year-on-year in June 2020, so the total number of completions in 2020 is still likely to show a considerable drop on the previous year," it said.

Dublin and Cork are the hardest-hit regions, the report said.

"The final out-turn for this year is likely to be around 18,000 units, some 14% down on the 21,000 units completed in 2019 and on a par with the 2018 level."

Mortgage draw-down has also dropped, it said.

"The 15,350 mortgages drawn down to a value of €3.46bn during the first half of 2020 reflects a fall of around 18% and 16% in volume and value terms respectively compared with the same period in 2019. 

"The total number of approvals in the first seven months of 2020 was 20,251 with a total value of around €4.8bn compared to €6.6bn in the same period in 2019, a decline of around 30% in value terms. 

"When we look at annualised mortgage approval activity, which reflects activity over the past 12 months, we see that mortgage approval activity to end-July 2020 was down by 4.1% by volume and 3.7% by value," the BPFI said.

Meanwhile, the CSO said that residential property prices decreased by 0.5% nationally in the year to July. 

There was no change in the year to June and an increase of 2.2% in the 12 months to July 2019, the CSO said in its latest property price index for homes.

In Dublin, homes saw a decline of 1.3% in the year to July, with house prices down by 1.2%, but apartments increased by 0.4%. 

The highest house price growth in Dublin was in Dun Laoghaire-Rathdown at 1.3%, while Dublin City saw a decline of 2.7%.

Prices for homes in the rest of the country were 0.2% higher in the year to July, with house and apartment prices up by 0.3%. 

The region that saw the largest rise in house prices was the south west at 4.3%. The south east, on the other hand, saw a 1.6% decline, the CSO said.

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