Property and construction news is relatively light today (which is probably no harm on a sunny bank holiday weekend), however, if you missed out on last week’s Round-Up, you can catch up here: https://propertydistrict.ie/sunday-property-round-up-may-27th-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!)
Sunday Read – Vacant Site Levy
Last week our Sunday Read was about the controversial vacant site levy. The deadline for registration and owner notification by the relevant local authority was last Friday, 1st June. Surprising, none of the broadsheets feature this so here are some of the most insightful articles from earlier in the week:
- Government controls vast swathe of vacant sites as housing crisis intensifies – State sits on portfolio of more than 330 vacant properties and sites: https://www.irishtimes.com/business/construction/government-controls-vast-swathe-of-vacant-sites-as-housing-crisis-intensifies-1.3515311
- Ructions over vacant site levyrage on: https://www.farmersjournal.ie/ructions-over-vacant-site-levy-rage-on-375762
- Builders react with alarm to site levy proposal – Minister says measure will be included in the budget: https://www.irishtimes.com/business/construction/builders-react-with-alarm-to-site-levy-proposal-1.3104162
Other Property News
- Hines granted permission for €1bn development in Cherrywood – Project includes 1,269 apartments and 585,000sq ft of retail and office space: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/business/construction/hines-granted-permission-for-1bn-development-in-cherrywood-1.3514937?mode=amp
- Thirty period houses mainly in Dublin 6 for sale for €60m – Houses divided into 265 apartments are producing rental income of €4.2m: https://www.irishtimes.com/business/commercial-property/thirty-period-houses-mainly-in-dublin-6-for-sale-for-60m-1.3512364
- Site with potential for 340 homes at Howth Harbour for €25m – Strong interest expected in waterfront site assembled for €62m: https://www.irishtimes.com/business/commercial-property/site-with-potential-for-340-homes-at-howth-harbour-for-25m-1.3511353
- Now buyers can borrow to purchase property at auction – Almost 500 potential buyers expected to bid at Ireland’s largest ever property auction: https://www.irishtimes.com/business/financial-services/now-buyers-can-borrow-to-purchase-property-at-auction-1.3512919
- How has it taken so long for a story like this to surface? This is a very real and ongoing problem for buyers in Ireland: Would-be first-time buyer left frustrated by experience with Bank of Ireland: https://www-irishtimes-com.cdn.ampproject.org/c/s/www.irishtimes.com/news/consumer/would-be-first-time-buyer-left-frustrated-by-experience-with-boi-1.3507091?mode=amp
- Housing forecasts at odds with numbers : https://www.irishtimes.com/business/economy/housing-forecasts-at-odds-with-numbers-1.3511644?mode=amp
- Teacher, nurse, average earner – what house could they buy in 1995, what can they buy today? https://www.irishtimes.com/business/personal-finance/teacher-nurse-average-earner-what-house-could-they-buy-in-1995-what-can-they-buy-today-1.3507227?mode=amp
- IRES REIT and the concept of good timing : https://www.irishtimes.com/business/commercial-property/ires-reit-and-the-concept-of-good-timing-1.3511732?mode=amp
- The lead story in the Sunday Independent today reads that ‘Property tax to rise as price cut hit €1 million homes’. This article, by Philip Ryan and Fran Power, refers to the fact that property tax is to increase from 2019 and how this will affect the luxury home market in Dublin, which has been falling significantly in recent months after a period of stagnation. The newspaper publishes Analysis of a sample of homes over €100 million and found that over half of these have dropped in value, some in excess of 20%. This tallies with what we have been hearing and it totally from agents in this market over the past six months.
- The lead business story in the Business section of the Sunday Independent today is also property-related one. Gavin McLoughlin writes about the possible (or even likely) IPO of Loan Star. The company are said to be “exploring“ nesting on the Irish stock market, which will not come as a huge surprise to the industry. According to the article, no decision has been made so we will continue to watch this space.
- There is an article about Camelot Europe (part of VPS Property Guardians) on page 3 of the Property section in the Independent. I came across this about five years ago and thought it was the perfect solution for freelancers and people with the ability to work remotely provided they don’t have children or pets. It involves essentially caretaking unique properties, like disused Garda stations or convince around the country, and in exchange you pay very small monthly fee and undertake to maintain the property. The main disadvantage for people is the short-term nature of the living arrangements, usually these properties are pending sale or change of use, which means tenants will likely be given one months notice when it is time to move on. It is definitely worth considering if you are flexible about where you live and are interested in new experiences as well as saving on extortionate rent payments.
- In his column today, Ronan Lyons asks the question ‘Will Irish house prices fall?’ He is referring to the controversial comments by Philip Lane last month and to quote a combination of factors that could not only hold price rises but even bring down sale and rental prices“. Among these factors, increased supply of housing, likely higher interest rates and the impact of Brexit all have the potential to negatively impact our housing market. In terms of supply, in addition to construction activities adding new stock to the market he cautions us to think about obsolescence, which in the marketplace the size of Ireland with 2 million dwellings, anywhere between 10,000 and 15,000 of these homes “are likely to fall into disrepair each year“. Taking into consideration all the factors he concludes that it is right to point out the property prices move in two directions, however, he feels it is unlikely that prices will fall any time soon.
- In the Commercial Property section, Ciara Connolly of Hammerson Ireland has an opinion piece about Dundrum Town Centre and describes its offering as a “movable feast for changing consumer appetite“. This is an interesting take on retail as the peace describes the evolving preferences of diners and consumers and the “clear divide“ that has emerged between brands that give consumers what they want and those brands that are still struggling to meet or adapt to the changing environment.
- In the Business section of The Sunday Times today Brian Carey and Philip Connolly write that Glenveagh Properties is apparently in “exclusive talks” to acquire the former Ford site in Cork (lined up as the Atlantic Quarter). The site has potential for approximately 564 homes together with office, hotel and event centre potential.
- Anyone with an interest in the Dublin market will have seen news earlier this week of the proposed sale of approximately 30 Georgian buildings in Dublin, expected to achieve €60 million. Brian Carey writes that Broadhaven Capital Partners, which is an alternative lender in the Irish market place, is behind this portfolio sale referred to as the Belgrave collection.
- In recent weeks I have included news of Yew Grove Reit, which is currently seeking to list on the Dublin ESM and London AIM this month. The company has apparently told investors can build a portfolio of €300 million to €500 million over the next three years, however, the journalist reports that “the company may also trim down the target size of the Reit upon admission from €100 million to €75 million“. This is particularly interesting in light of Hibernia chief Kevin Nowlan’s comment in recent weeks that Reits must list with €500 million in order to have the scale and impact needed to succeed.
- In The Sunday Business Post today Róisín Burke has an interview with Brian Moran, chief executive of Hines Ireland to discuss Dublin‘s newest suburb – Cherrywood. This timely article comes in the week that planning approval came through to start the €1 billion Cherrywood Town Centre. The new development will contain 1269 apartments by 2020, together with retail units parks, leisure centres and a primary health care centre.
- After two weeks of quite negative PR (‘€1,500pm and two months deposit for an unfurnished one-bed in Finglas’), Ires Reit introduces its new chief executive Margaret Sweeney in an interview with Jack Horgan-Jones in the SBP today.
- Karl Deeter has an interesting – albeit ever so slightly cynical – column in the Property section of the SBP today headed ‘Got a problem? Don’t worry, we have a bill for that’. He describes that “When it comes to housing, there are more bills floating around the Dail than ducks in your local pond“. He has a point. This follows on from criticism from other commentators and leading property figures who have spoken out about the disjointed nature of all of the so-called solutions being introduced, with many liking them to photo opportunities only, that is to say, all style and no substance. There is no doubt that our housing minister is keeping himself busy, however, being busy is not the same as being productive, and being productive is not always the same as being effective.
GDPR for Irish Real Estate Businesses
Comprehensive Guide to GDPR Compliance for Irish Real Estate Businesses
Proptech and Construction Innovation
- Property Button gives residential tenants the tools to compete in Dublin’s hyper-competitive market #proptech: https://irishtechnews.ie/property-button-gives-residential-tenants-the-tools-to-compete-in-dublins-hyper-competitive-market/amp/
- #PropTech Already at the Doorstep of Real Estate Business | The Budapest Business Journal : https://bbj.hu/inside-view/proptech-already-at-the-doorstep-of-real-estate-business_150093#
- What this blockchain experiment in Bushwick means for RE investors: The company behind the deal, Meridio, believes “this is going to be a paradigm shift” for NYC’s housing market: https://therealdeal.com/2018/05/26/what-this-blockchain-experiment-in-bushwick-means-for-re-investors/
- PROPTECH TRENDS TO LOOK OUT FOR IN 2018: http://www.cushmanwakefield.com/en/research-and-insight/2018/proptech-trends
- 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.