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New Daft Report - Q1, 2006

  • 22-05-2006 2:04pm
    #1
    aniascor
    Registered Users, Registered Users 2 Posts: 503 ✭✭✭


    You may have all seen this already, but there was a new Daft report released last Thursday.
    http://www.daft.ie/report/DaftReport-Q12006.pdf

    What's interesting is if you look at the graph on page 3, you can see that talking about rising house prices in Ireland generally is really not allowing for regional differences. It's Dublin, Cork, and Galway where the main increases are taking place and increases in these areas are not reflected across the entire country. If you look at the prices for Limerick, you will see that they actually dropped a little bit towards the end of last year. And prices in Munster as a whole seem to have levelled off.

    So if we are going to talk about a bubble or a possible crash, should we not be discussing it at a more regional level, rather than talking in terms of the entire country?


Comments

  • #2
    FillSpectre
    Closed Accounts Posts: 834 ✭✭✭FillSpectre


    aniascor wrote:
    So if we are going to talk about a bubble or a possible crash, should we not be discussing it at a more regional level, rather than talking in terms of the entire country?

    Oh yes that is completely true but people don't like to do that. The Fact is there may be a partical crash with only certain areas suffering. Some people would have you believe if there is a crash the highest price area will suffer the most. After watch a few property shows about the UK ist looks like the opposite happens. Houses that go up in baddly serviced areas etc... have theri prices pushed up by the comparison to more expensive areas and as a result of people moving further out to get better value.

    In the event of a down turn the property that won't sell is the property baddly serviced etc... or just generally the lower end of the market. As people can buy better for less when the market is recovering the better property recovers first.

    Dublin is a very complex set of areas too. I know of 70% house differnce over 200 metre distances for less space. Darndale house prices did not raise at the same reported rates as the rest of Dublin.

    The whole talk of overpriced Dublin may be truely wrong as from my understanding London recovered within 5 years in general terms while parts of the North of England still have not.


    I am inclined to think that buying a good house in a good place will do you alright. Daft is not a very accuarte source of info though as there are some regional websites that locals use for accomadation ads which is all Daft are basing their info on.


  • #3
    aniascor
    Registered Users, Registered Users 2 Posts: 503 ✭✭✭aniascor


    FillSpectre wrote:
    Daft is not a very accuarte source of info though as there are some regional websites that locals use for accomadation ads which is all Daft are basing their info on.

    True - Daft is definitely more reliable for Dublin, I think, than for the rest of the country. But that is changing, as word of Daft grows, and more and more people from the rest of the country advertise on the site.
    FillSpectre wrote:
    Some people would have you believe if there is a crash the highest price area will suffer the most. After watch a few property shows about the UK ist looks like the opposite happens. Houses that go up in baddly serviced areas etc... have theri prices pushed up by the comparison to more expensive areas and as a result of people moving further out to get better value.

    I agree with you here. Being from Limerick originally, that is where most of my friends are now and where my family is, so I have been paying attention to prices there while I have been looking for property in Dublin. Limerick was never the most expensive area to buy, but still, it struck me about a year ago that Limerick would be one of the first places to be hit by any kind of a dip in the market because there are so few jobs there compared to somewhere like Cork or Dublin. And a few years back (around 2003/early 2004) a friend of mine sold one house (which she had had for 2 years) and doubled her money, and then bought a new house for 220,000. Just before Christmas 2005, other friends of mine were pricing an identical house in the same development, and were told they were selling for 240,000. Compared to what's been happening in Dublin, an increase of 20,000 over a few years doesn't seem that drastic. I think the levelling out has already happened in Limerick - without the devasting effects everyone has been predicting.

    A lot of people seem to have been buying recently purely with the intention of making some easy money without stopping to think about the big picture. I think that is why run-down houses in an area can sometimes sell for as much as well-maintained houses - simply because people hear that prices in this area are going up and up.

    These people are in for an awful shock if Dublin prices start to level off too, because you are right, the lower-quality houses will no longer sell for the same price as the higher-quality houses.


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