It was a busy week for property in Ireland. In addition to scanning the broadsheets this morning, I have captured some of the biggest stories below including construction and proptech news – don’t miss the article on 3D printed homes in Europe. If you haven’t read last week’s Round-Up, you can catch up here: https://propertydistrict.ie/sunday-property-round-up-june-3rd-2018/
As always, you might let me know if I have missed out on any relevant property news by emailing email@example.com.
(Apologies in advance for any typos, it’s difficult to get good help on a Sunday. Also, I use voice to text dictation so just sound out anything that really doesn’t make sense in a strong rural accent and that should help!)
Have Irish developers and planners woken up to meaningful public engagement that works yet? (*details of the PLACEengage Irish platform trial from Sept. 2018 to May 2019 will be announced this month*)
- The rise of densification in towns and cities | Professional | Property Week: https://www.propertyweek.com/professional/the-rise-of-densification-in-towns-and-cities/5096923.article
- Galway to devise a ‘public realm’ strategy for city centre – City’s hiring of urban planners mirrors similar Dublin strategy in 2008: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/business/commercial-property/galway-to-devise-a-public-realm-strategy-for-city-centre-1.3520166?mode=amp
New Reit on the Block
- Newly incorporated Irish REIT raises €75m on IPO: https://m.independent.ie/business/commercial-property/newly-incorporated-irish-reit-raises-75m-on-ipo-36978665.html
- Gavin Daly, writing In The Sunday Times today confirms that Aib has taken a 9.75 stake in the newly-formed Yew Grove Reit.
- Also, Ian Guider has an article in The Sunday Business Post today reporting that the Reit “may tap investors for more cash next year as it looks to grow its assets up to €500, million“ (which, incidentally, is the figure Hibernia chief Kevin Nowlan said is the minimum required for successful Reit launch).
Other Property News
- This is Ireland’s favourite building – The shortlist for the public choice award included 31 entries around the island of Ireland and one in India: https://www-thejournal-ie.cdn.ampproject.org/c/www.thejournal.ie/irelands-favourite-building-riai-4059452-Jun2018/?amp=1
- Developer Sean Mulryan’s Ballymore has signalled its intention to enter the rapidly-expanding build-to-rent (BTR) sector in London: https://amp-independent-ie.cdn.ampproject.org/c/s/amp.independent.ie/business/commercial-property/ballymore-eyes-btr-market-in-uk-36988104.html
- Tristan and SW3 grow south Dublin rental portfolio: https://amp-independent-ie.cdn.ampproject.org/c/s/amp.independent.ie/business/commercial-property/tristan-and-sw3-grow-south-dublin-rental-portfolio-36992110.html
- Ex-Anglo bankers back Drogheda shopping centre buyout from Cerberus – Rockmill, run by developer Phil Reilly, refinanced project with help from lending house ECB: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/business/retail-and-services/ex-anglo-bankers-back-drogheda-shopping-centre-buyout-from-cerberus-1.3524383?mode=amp
- Green light for 115-plus homes beside Cabinteely Park – Site of former Doyles Nursery to be developed under fast-track initiative: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/life-and-style/homes-and-property/green-light-for-115-plus-homes-beside-cabinteely-park-1.3524053?mode=amp
- More than 2,850 student beds to open in Dublin this year – Some 6,180 student bed spaces under construction in capital, research shows: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/business/commercial-property/more-than-2-850-student-beds-to-open-in-dublin-this-year-1.3522702?mode=amp
- Dublin City Council says average housing unit costs €330,000 – Senior official says higher-rise and smaller apartments the only way to reduce costs: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/news/ireland/irish-news/dublin-city-council-says-average-housing-unit-costs-330-000-1.3523127?mode=amp
- Plans for seven-storey Dublin office building rejected – because it would interfere with Dart Underground http://www.thejournal.ie/dart-underground-dublin-office-building-rejected-4057835-Jun2018/
- Owner of one Cherrywood site looking for Dublin property swap: Vendor will look to exchange 13-acre site for grade A office block – without naming price: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/business/commercial-property/owner-of-one-cherrywood-site-looking-for-dublin-property-swap-1.3520101?mode=amp
- A €280m Saudi-backed plan to regenerate Waterford’s North Quays has been cleared – Objections against the new shopping centre, office blocks and 300 apartments have been withdrawn: http://www.thejournal.ie/waterford-shopping-centre-north-quays-2-4055886-Jun2018/
- Industry’s Low Debt Levels Could Create Safe Investment Opportunities During Economic Downturn. Read more at: https://www.bisnow.com/national/news/capital-markets/industrys-low-debt-levels-could-create-safe-investment-opportunities-during-economic-downturn-88944?_lrsc=f62a0ead-e352-4521-a67d-7abb73124a78
- Cork looking up as cranes set to dominate city skyline at developments worth €1bn – https://www.irishexaminer.com/breakingnews/views/cork-looking-up-as-cranes-set-to-dominate-city-skyline-at-developments-worth-1bn-846971.html
- Fine Gael spends €4bn on private rental landlords, new figures reveal – Fianna Fail says Government’s reliance on private rental market is ‘unsustainable’: https://m.independent.ie/irish-news/politics/fine-gael-spends-4bn-on-private-rental-landlords-new-figures-reveal-36972122.html
- Teagasc Land Review and Outlook Report 2018 – https://www.teagasc.ie/media/website/publications/2018/Land-Review-and-Outlook-Report-2018.pdf
- CIF urges recognition of returning builders’ qualifications: https://amp-independent-ie.cdn.ampproject.org/c/s/amp.independent.ie/business/world/cif-urges-recognition-of-returning-builders-qualifications-36973709.html
- According to Alan O ‘Keefe writing in the Sunday Independent today ‘House prices will continue rising for the next three years: Risk of a “bubble” but increasing new homes to balance market’. This article is based on research from the ESRI that indicates the cost of housing will keep climbing for the next three years, however, “if there are continuous strong rise in the cost buying homes over the next 18 months, there is the possibility of a property bubble emerging“. Dr McCarthy of Savills is also quoted in the article as being sceptical of the most recent housing figures that show 19,300 new homes were built in 2017. He believes the true figure may be closer to 14,000. He also believes that 20,000 new homes will be built this year, however, 35,000 are needed annually to fulfil demand.
- Roisin Shortall has an interesting opinion piece on page 24 of the Sunday Independent today talking about how “creating a special designation category for older peoples’ housing needs would help young and old – it makes sense to build specific elderly peoples accommodation and infill sites in our city“. This is an excellent piece and the approach makes absolute sense. We know that many people remain in houses that are simply too large for their current needs, possibly after adult children have flown the nest. No one is suggesting that people who wish to remain in their homes are encouraged to move, however, providing smaller, better designed and more appropriate accommodation for older people within their existing communities-this part is very important-is certainly one way to free up larger family homes within the city centre.
- The lead business story in the Business section of the Sunday Independent today is a worrying one for the construction industry. It highlights recent high-profile examinership’s and liquidations across Ireland’s construction sector. It is certainly a worrying trend. While the article refers back to the collapse of Carillion, which certainly had far-reaching effects for Ireland’s supply chain, one of the more immediate problems appears to be the onerous “fixed price” public contracts that do not even allow for inflation over a three-year period.
- In the same newspaper today, Katy McGuinness has a special report on buyers’ agency (the opposite to estate agency) in Ireland. After more than a decade of working and building up this sector in Ireland, I personally find it heartening to see the potential beginnings of an exciting new sector in Ireland’s property market, albeit decades behind global trends. The article highlights the off-line approach taken by the current agents, which is an important element, however it is clear that achieving scale is still a problem. It will be interesting to watch how this niche sector embraces technology to access off-market properties as we have seen in the UK, or perhaps as expert buyers these are the people to push for online bidding platforms for private treaty sales to ensure greater transparency and fewer delays in the conveyancing process for all buyers. For buyers who perhaps fall between two stools in terms of wanting to do their own house-hunting yet needing access to up-to-date, relevant but Independent, local market information, check out buyersbroker.iefor a technology driven, independent research facility for property buyers in Ireland (or www.buyersbrokerinternational.com for European and global research).
- There is an article on the liquidation of Sammon Contracting on page 12 of the SBP today. Apparently debt funding of 15 million was required, however, the company fell short in securing this. It is the latest in a series of high-profile casualties across the Co are industry.
- Property Industry Ireland, part of IBEC, has a special feature on pages 26 and 27 of the SBP today in advance of its annual conference this week. The focus of the conference is on ‘Planning for Future Communities’.
- Also in the the SBP today, Donal Buckley reports that Weston office rents lag behind the capital. “At about 350 per square metre, office rents in Galway and Limerick are roughly half as expensive as those in Dublin“.
- Homing in on diversification: six things we have learned from our international residential experience: https://www.aberdeenstandard.com/en/ireland/insights-thinking-aloud/article-page/homing-in-on-diversification-six-things-we-have-learned?utm_medium=social&utm_source=linkedin&utm_campaign=diverse-h1-2018-industry_linkedin_social_ie_en&utm_content=sponsored&cn=diverse-h1-2018
GDPR for Irish Real Estate Businesses
Comprehensive Guide to GDPR Compliance for Irish Real Estate Businesses
Proptech and Construction Innovation
- Netherlands to build world’s first habitable 3D printed houses – Developers say project will cut costs and address shortage of bricklayers: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/business/construction/netherlands-to-build-world-s-first-habitable-3d-printed-houses-1.3521122?mode=amp
- Proptech: The Irish new homes market is a sleeping giant that is only now waking up – ‘Technology Driving Changes in Ireland’s Property Market’: http://prop-tech.ie/proptech-the-irish-new-homes-market-is-a-sleeping-giant-that-is-only-now-waking-up/
- Irish #proptech provider Property Button helping agents to tackle current rental chaos: https://irishtechnews.ie/property-button-gives-residential-tenants-the-tools-to-compete-in-dublins-hyper-competitive-market/amp/
- TECHTALK RADIO: JLL Spark co-chief executive Mihir Shah, talks to EG about the creation of a $100m fund to invest in #proptech start-ups: http://www.techtalkradio.podbean.com/
- Proptech – staying ahead of the curve; It is a dynamic time to be in real estate right now, with #proptech starting to have an important impact on both the residential and commercial property sectors: https://www.propertyweek.com/professional/proptech–staying-ahead-of-the-curve/5096921.article
- Proptech needs to add real value to succeed | Insight | Property Week; https://www.propertyweek.com/perspectives–summer-2018/proptech-needs-to-add-real-value-to-succeed/5096922.article
- To keep up-to-date on all things tech and innovation for the planning, construction and property industries, head over to http://www.prop-tech.ie, the national resource website for innovators, investors and mentors or email firstname.lastname@example.org .
Property Insiders Guide
As many of you might know, my annual property book The Irish Property Buyers’ Handbook (since 2011) has undergone a rebrand for 2018 and will now appear as part of The Property Insider series, published by Oak Tree Press, the first three titles are now published and available here.