Irish property database says turnover at 50 per cent of ‘normal’
Irish estate agents are hoping trade from potential UK buyers will make up for a below-par Irish property market at an Irish property fair in London this month.
The latest property fair comes as a major Irish property database says turnover of Irish residential property is barely 50 per cent of what is considered “normal” in a healthy housing market.
Sherry FitzGerald will hold its Irish Property show, sponsored by www.myhome.ie, The Sunday Times, and Bank of Ireland at the Millennium Gloucester hotel on Saturday 20 February between 11.00 am and 3.00 pm.
It is hoping to entice buyers into a market which, despite the official economic recovery, is functioning at less than half the rate that would normally be expected, according to new research published by Ireland’s largest property database, GeoDirectory.
It says the Ireland’s low national turnover rate of 2.2 per cent means Irish residential construction levels are still well below what is considered to be a more normal rate of around 4 per cent or 5 per cent.
GeoDirectory’s chief executive Dara Keogh said: “This rate is showing very few signs of improving and is still well below what would be deemed to be a more normal housing turnover rate of around 4 per cent to 5 per cent.”
Annette Hughes, Director of DKM Economic Consultants echoed this sentiment: “This is the fourth comprehensive report about the residential building stock of its kind to be published in Ireland.
The key statistic, which the report highlighted, was that the national average housing turnover rate in the year to December 2015 stood at 2.2 per cent.
This rate is showing very few signs of improving and is still well below what would be deemed to be a more normal housing turnover rate of around 4 per cent per cent to 5 per cent.”
GeoDirectory analysed figures from Ireland’s Property Price Register to analyse the difference in prices all over the country.
It estimated that 43,428 residential transactions occurred in 2015, contributing to a national turnover rate of 2.2 per cent.
There were 2,009,896 residential dwellings across Ireland by the end of last year.
There were 43,428 transactions in 2015 of which 13 per cent were new properties and 87 per cent were second-hand property transactions.
• Dublin had the highest average transaction price (€356,194) in the country for 2015, followed by Wicklow (€296,045) and Kildare (€244,543).
• Wicklow had the second highest average price at €296,045.
• Longford had the lowest average transaction price in Ireland at €78,934, up from €75,583 in August 2015.
• This was followed by Roscommon at €90,728.
• Monaghan had the lowest turnover rate of 1.2 per cent, followed by Donegal (1.5 per cent) and Tipperary (1.6 per cent).
• A total of 3,957 residential buildings were classified as being ‘under construction’ in the GeoDirectory Database’s fourth quarter of last year up slightly from the figure recorded in the second quarter of last year which was 3,786.
• Detached dwellings accounted for the largest proportion at 40.9 per cent of the total housing stock.
• Ireland’s stock of apartments amounted to 9 per cent of the total housing stock while 63 per cent of all apartments were located in Dublin.
In Dublin construction levels are struggling to match demand for new housing (16.9 per cent of all buildings under construction in the country) compared to Cork (11.9 per cent), Donegal (11.1 per cent), and Galway (7.1per cent) followed.
Building activity remained slow in Roscommon and Leitrim where fewer than 40 buildings were under construction in each county.
Kildare saw a significant increase in the number of buildings under construction, up to 253 buildings in the fourth quarter of last year from 19 a year before. Waterford, which has a relatively small population, had the greatest number of dwellings per 1,000 of the county’s population at 794.
In contrast, Dublin had one of the lowest ratios at 412 dwellings per 1,000 of the population.
The lowest ratio was found in Kildare with 380 dwellings per 1,000 of the population.
In Dublin, where demand for housing is strongest, new housing represented 16.9 per cent of all buildings under construction in Ireland.
Building activity, meanwhile, remained slow in Roscommon and Leitrim where fewer than 40 buildings were under construction in each county.
Kildare witnessed a significant increase in the number of buildings under construction, up to 253 buildings in the final quarter from 19 the previous year.
Dublin had the highest residential density per square kilometre (572 dwellings per square km). The next highest ranked county, Louth (63), had a substantially lower density, followed by Kildare (47). Leitrim and Mayo (both 12) had the lowest residential densities.
Meanwhile, the Society of Chartered Surveyors Ireland said residential development land values increased in by 19.7 per cent in Dublin, 16.7 per cent in Munster, 15.1 per cent in Leinster and 10 per cent in Connacht/Ulster. It said residential development land values in Dublin would increase by around 12.1 per cent in 2016.