Lack of stock a major issue for the capital

Lack of stock a major issue for the capital

Earlier this week MyHome carried out a comprehensive study on the Dublin property market, which showed that both the level of transactions and the value of transactions is up in the first three quarters of the year, compared with the same period of 2012.

The study, which analysed data from the Property Price Register, backs up recent reports that property prices are on the rise in the capital.

Rather than a return to the Celtic Tiger era, this upturn in fortunes that the market is experiencing at present is largely down to one thing – stock, or a lack of it.

This was acknowledged at Lisney’s conference on the Dublin housing market on Tuesday, where it was acknowledged that “demand is significantly outweighing the limited supply” and a call was made to start building to cater for future demand.

Using data from MyHome, Lisney have estimated that stock levels from June 2011 to September 2013 have dropped by 60% in Dublin.

That is largely what is pushing prices up, a lack of availability of good quality family homes.

With only around 3,500 properties for sale in the capital and around 1,500 properties to rent that means there is fewer than 5,000 properties available for the county’s population of 1.3 million.

Depending on circumstances some of those won’t suit. For example, a typical family with two adults and two children are unlikely to be interested in a one bed apartment and when this sort of situation occurs the field narrows even more.

While a lot of attention is giving to the residential market, the rental market could impact on the country’s economy soon if it does not improve.

Lisney estimate that 5,000 rental properties are required per month and MD James Nugent predicts that “it’s at a stage where the CEO of Google or Facebook will call the Taoiseach to say they can create no more new jobs here because they can’t get places for the staff to live.”

With Dublin’s population expected to surge in the years to come, building needs to start now. The demand, whether it be to buy or to rent, is there. All that is lacking is choice and availability.

Let us know your opinion on the matter…

  • Can you see the current upturn in fortunes for the Dublin property market continuing?
  • Do you feel there is a need to build?
  • Has you been affected by a lack of stock while trying to buy or rent?
There are 7 comments for this article
  1. Michael Moore at 2:31 pm

    This report is extremely disingenuous, the purpose of this report is to inflate the market. The second paragraph reads “The study, which analysed data from the Property Price Register, backs up recent reports that property prices are on the rise in the capital”. A simple analysis of the figures provided in the report show that for Dublin 6 avg transaction price is the same as in 2010 and infact Dublin 6W is down by 8%. I wish those reporting on the market would take responsibility for their actions and take more care on what they report.

  2. Chris at 2:29 pm

    First question is why the supply is so low? Isn;t it because so many people want to move but can’t because the banks do not allow them to sell given negative equity. Increased supply will come when banks are finally dealing with this issue. They are more and more forced to by the government. Building (much) more will create an oversupply in the mid-term.

  3. mary lynch at 1:36 pm

    There are houses in our area which are up for sale for a while and not sold!Just because a large number attend showings of houses doesnt necessarily mean they are all interested. We are intereseted in moving to a bungalow so when we go to a viewing we want to see is it suitable for us but more importantly is it value for money. We have seen some which had a ridiculously high asking price because of the area but they were not even wheel chair accessible if that were needed down the line as people get older!
    I think there is a lot of media hype aided by the estate agents. A lot of commission to be got!!? People should not be taken by this. There are probably quite a few cash buyers also plus investors which keeps the ordinary people out.

    • jamesrogers at 1:47 pm

      Mary, exactly the point that it is hard to find suitable properties at present because there are so few on the market. When you take out the properties that are unsuitable for your own needs it leaves very few to pick from and even if you are lucky enough to find your needs there is a good chance others will be interested too which is what is driving up prices and fueling demand.

  4. Stephen Hamilton at 1:18 pm

    There is of course a need to start building in Dublin but most of the Developers / Builders are bust and those that are not are hesitant to lose any more money.
    Building will eventually start however but these things always lag a bit. It took a while for the building to stop when we no longer needed more houses and it will now take a while for the right level of building activity to start up again.

  5. Brian at 12:43 pm

    Given the recent property crash I think it might be a little early to be stoking the fires again?

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