Will the surge of properties on to the market push rents down?
The latest Daft.ie Rental Report shows that rents nationwide have been largely stable over the past twelve months. This post looks behind these top level figures and explores two issues in particular. The first is the stock available to rent in the cities across Ireland, and whether this will push rents down in coming months. The second is how far the rent-house price relationship has adjusted back to normality in the past four years… and how much more of an adjustment is needed. Read more
Falls in asking prices start to ease but NAMA questions remain
This post reviews the latest Daft Report, released this morning, which finds that asking prices are one third below their peak on average. Of encouragement to all parties is the high levels of transactions, with one in three properties posted in January either sold or sale agreed already. It also discusses Brian Lucey’s commentary, which outlines implications for NAMA. Read more
Elephant in the room: NAMA’s yield problem hasn’t gone away
With NAMA set to swing into operation, this post outlines the elephant in the room for NAMA: yields on Irish property. It also discusses how NAMA could still work for taxpayers – if those working for NAMA ensure that they make themselves fully aware of the true yields on various types of Irish property and how those yields may correct themselves over coming years. Read more
Two charts on the stock of property for sale in Ireland
Has the new year brought a change in the property market headwinds? Will first-time buyers waiting in the wings find themselves missing out if they don’t move soon? This post looks at trends in the total stock sitting on the market in both apartments and houses, across Dublin, in the other major cities and in the rest of the country. It also estimates the percentage of all properties currently listed for sale in each segment Read more
Asking prices down up to 43%, Irish property market loses €180bn in value
The latest Daft report, reviewing house prices in 2009, was published today. This post reviews its main findings and updates the estimate of the total value of residential property in the country, before outlining the likely developments in the Irish property market over the course of 2010. Read more
The importance of getting NAMA’s core assumptions right
This post examines three key assumptions underpinning the assertion that NAMA only requires a 10% rebound in property values in 10 years to ‘wash its face’. It looks at the importance of measuring the fall right, questions the yield given for NAMA’s loan book and raises the possibility of any yield correction coming through downward rent adjustment, not a rebound. Read more
NAMA: Top Five Facts
This post sets out the key facts about NAMA, as per the Department of Finance’s supplementary information, published on Wednesday. It goes through the amount lent, the number of deals, the loan-to-value, the estimated fall from peak so far and NAMA’s proposed ‘plateau’ level, before raising some issues to be dealt with in later posts. Read more
Top end of the market hit the hardest as rents continue to fall
The latest Daft report was released this morning. It shows rents falling all around the country, good news no doubt for new and returning students. This post reviews some of the latest trends in the rental market, including the growing urban-rural divergence, the relative importance of confidence and affordability as factors determining rents, and the potential impact of over-construction on rents beyond the short term. Read more
The level of transactions in property and the emergence of regional property markets
The latest daft report shows that asking prices are now almost 25% below their 2007 peak but also shows regional differences, with prices in some areas falling twice as much as in others. This post explores the typical time a property spends on the market across the different parts of the country and the share of properties coming off the market in a particular month. Interesting regional trends emerge. Read more