CSO’s Resi Property Price Index Nov 2019 was published earlier today, full details here:
Trevor Grant, Chair of the Association of Irish Mortgage Advisors (AIMA)Trevor Grant, Chair of the Association of Irish Mortgage Advisors (AIMA)
“While the latest CSO property price index for November is relatively flat, AIMA mortgage advisors have seen a significant increase in mortgage enquiries in the last couple of weeks – well above anticipated January/seasonal levels. In time, this is likely to translate into a higher number of property sales. In particular, the cohort of customers looking to trade up, who have been relatively quiet over the last few years, are indicating their plans to trade up to a larger home. Assuming this tracks through, it should free up a greater number of starter properties for first time buyers.”
Eamon Hetherington, Director, Property Developers GPDEamon Hetherington, Director, Property Developers GPD
“These figures suggest a slowdown in house price growth – but the overwhelming feeling in the marketplace is that we will see house prices go up this year. So, any levelling off may well be short-lived, which is concerning because in December of last year, the Economic and Social Research Institute (ESRI) said that “prices are as high as they can possibly go given affordability in the domestic economy”.
We need to address the factors that will drive prices up – supply is an obvious one, but before we can look at supply, we must look at the cost of building. Material costs are going up and will go continue to increase in line with Brexit. Ireland currently imports a large portion of its building products from England – we need to start looking at buying directly from Europe.
Also, land remains too expensive. Property prices will fall only when the cost of land comes down.
In terms of addressing supply issues we should be looking up – not out. We need good sized apartments – and we should be encouraging builders to develop these – not just to fit as many as they can on one site. But this needs to be facilitated and local authorities need to step in to support the feasibility of these developments… allotments in urban areas for residents, proper and secure bike storage facilities, greater infrastructure etc.
Ultimately Ireland’s economic forecast is positive. Growth is expected, but it will put a greater strain on our housing needs. For example, just last week KPMG announced the are looking for 800 workers – 400 of these will be graduates – these people will have differing housing needs – we must be able to accommodate our workers and their families.”