Are accommodation prices coming down?

Arathorn

jozi wrote: »

I've not been keeping an eye on daft yet, will be nearer to the lease finishing up in Feb.

What would people say the following house is worth:
The place was done-up before we moved in, we are the 1st tenants since so everything is in good condition.
There's a kitchen with everything you expect, not massive but by no means small. Very big sitting room with open fire, conservatory out back, washing machine dryer, back garden with access to walled private garden only accessible by the houses backing on to it. There's room on the drive for 2 car and on street parking. 4 bedrooms on 1st floor (1 with en-suite, 1 is the box room, the other 2 are double rooms, all lots of storage space) and a bathroom with bath. and a 5th room up in the attic, it's a dormer room and takes up nearly the whole floor plan of the house.
It a nice quiet area in Drumcondra, near train, buses etc.

I'll not say how much we are paying as I know its to much and has to come down in the new year.

Jozi

I'd put a price of €2700 on it

The_Conductor

jozi wrote: »

I've not been keeping an eye on daft yet, will be nearer to the lease finishing up in Feb.

What would people say the following house is worth:
The place was done-up before we moved in, we are the 1st tenants since so everything is in good condition.
There's a kitchen with everything you expect, not massive but by no means small. Very big sitting room with open fire, conservatory out back, washing machine dryer, back garden with access to walled private garden only accessible by the houses backing on to it. There's room on the drive for 2 car and on street parking. 4 bedrooms on 1st floor (1 with en-suite, 1 is the box room, the other 2 are double rooms, all lots of storage space) and a bathroom with bath. and a 5th room up in the attic, it's a dormer room and takes up nearly the whole floor plan of the house.
It a nice quiet area in Drumcondra, near train, buses etc.

I'll not say how much we are paying as I know its to much and has to come down in the new year.

Jozi

It really depends- but from looking at Daft here - I'd say that you would definitively be paying north of 1600- possibly around 2k mark.

jozi

I just had a quick look after Arathorn said 2700, which is more than what we pay now .

Prices doe seem to vary quite a lot :rolleyes: There don't seem to be to many 5 bedroom houses, there's enough 4 beds thou.

I'll have to keep an eye on it a little bit. 1600 - 2000 would a nice reduction alright if we can gt them to drop that low.

EnoughSaid

The increase in the number of properties for rent on daft can be seen if you scroll down in the following link:

http://daftwatch.atspace.com/

The number has increased from about 6K in July 2007 to approx 21K now. That is a phenominal increase in supply and this will be the reason for the falling rents.

Fozzie Bear

Sign of the times............

http://www.daft.ie/searchsale.daft?search=Search+%BB&s[cc_id]=c19&s[address]=lydacan&s[txt]=&s[mnb]=&s[mxb]=&s[mnp]=&s[mxp]=&s[pt_id]=&s[house_type]=&s[sqmn]=&s[sqmx]=&s[mna]=&s[mxa]=&s[npt_id]=&s[days_old]=&s[new]=&s[agreed]=&s[search_type]=sale&s[transport]=&s[advanced]=true&s[price_per_room]=&s[furn]=&s[refreshmap]=1&limit=10&id=420863

jozi

I just wanted to post that as of this month our rent has come down by 500 euro.

Initially we asked the agency could we get a reduction and they came back to use with a new rent of 2250. While it was a reduction we decided it wasn't enough and proceeded to ask for a meeting with the agency.

My self and a flat mate had been looking on daft over a period of a month for cheaper places and pdf'ing properties we found with the intention of bringing this to the agency for the meeting as well as being an option to move to these properties.

I could not meet with them but my flat mates did and said the lady was really nice and understood where we were coming from in looking for a reduction (or cheaper property). While she said the properties we found where not of as good quality as this place, which was true, she would see what she could do and a few days later they phoned us with an offer of 2000 per month which we gladly accepted

Jozi

jimmycrackcorm

smccarrick wrote: »

First of all- its impossible to call- when "bottom" has been hit. In an international context- the most compelling example to use as a comparison to the Irish residential property sector is the bubble experienced in the Japanese commercial property sector. They have now 'recovered' in price somewhat, and are now trading at values last seen in 1988. Even this must be clarified somewhat- as the prices even there, have started to slip in the global mess (despite real interest rates in Japan (and Switzerland and elsewhere) being firmly negative in real terms.

It could very well be that the headline 'price' associated with property ownership, might very well only be one faucet of the cost of ownership. There are a lot of aspects that people do not want to consider.

How do you determine what an 'over valued rip-off' price actually is? Worth is determined by what its purchaser is willing to pay for an item or good. It does not mean that those involved in the transaction are in a rational frame of mind- simply that as far as they are concerned, property x is 'worth' blah to them......... The OECD reported Irish property prices as between 20-25% over-valued in 2001. Thats fully years ago. We are now experiencing actual deflation- as opposed to inflation. Irish GDP is expected to shrink by between 6 and 8% next year- and household inflation in most recent figures- despite what everyone might, is about -.6% (annualized at roughly +2.4% but falling rapidly). In a situation such as this- what is a reasonable value for property? I certainly wouldn't hazard a guess- would you?

Keep in mind- the 'over-valued rip off prices' we had previously, were in conditions of 100% employment- where a brickie could easily expect a 120k+ salary- and even apprentices were on 600-800 a week. If you add things like this into the equation- our newfound position of zooming unemployment (easily expected to reach 9% by the end of 2009), real falls in actual income and a total lack of credit- it could be argued that the economic fundamentals alone supported 2006 prices- whereas the 2009+ prices do not have the same fundamentals to prop them up.

What criteria would you use to try to determine the 'worth' of a property to you? How do you see these criterion evolving as all our situations change?

I'm genuinely interested.

S.

I think the Japan commercial property comparison is invalid. I observed lots of empty commerical property a few years ago (Park West for example) and can only conclude that commercial and residential are on seperate paths regardless of similar direction here.

I also think that the 2001 reference is out of context now. To go that far back, the current pay cuts would have to go way beyond 10-15% that are common these days.