Irish Property Market 2020 Part 2

PropQueries

Some possible good news if you’re against co-living with “Taoiseach Micheál Martin has acknowledged that co-living accommodation has the potential to become glorified tenement living”.

Link to article here: https://www.irishtimes.com/news/politics/co-living-apartments-could-become-glorified-tenement-living-says-taoiseach-1.4386528

Idbatterim

Laughable. Co living is a rip off, but whats his plan? 50 square meter apartments affordable on an average wage? Good one...

KennisWhale

https://www.irishtimes.com/business/commercial-property/oaktree-joins-forces-with-johnny-ronan-on-irish-glass-bottle-site-1.4386155

Ronan uber alles.

Johnny Ronan’s Ronan Group Real Estate (RGRE) has secured US private equity group Oaktree as a joint venture partner for the development of the former Irish Glass Bottle (IGB) site in Dublin.

News of RGRE’s addition of the Los Angeles-headquartered investment giant as a partner on the scheme comes just weeks after The Irish Times reported how underbidders for the project had contacted Nama to express their continued interest in the site following the expiration of the 30-day time period the agency had set for the deal’s completion.

The bid was well in excess of the €125 million guide price Nama had been guiding when it began marketing the opportunity in July 2019. It is also understood to have outstripped the offers made by the other shortlisted parties by a significant margin.

The other shortlisted bidders were: Sean Mulryan’s Ballymore Group; Dallas-based private equity giant Lone Star’s Quintain Ireland housebuilding unit; and US real estate investment firm Hines.

The former IGB site lands are held through a company called Pembroke Ventures. Some 10 per cent or 350 of the 3,500 homes planned for the site are to be set aside for social housing, while at least 15 per cent (525) are expected to be affordable housing. The site also has scope for up to one million sq ft of office and retail accommodation, along with a school and public space.

This will be a fantastic development once they start turning the sod. It's very promising to see such interest from big name investors in the housing market. It will give us lots of new developments so buyers won't have to take the probate places which need the old lady smell fumigated just because there is so little supply.

KennisWhale

HotDudeLife wrote: »

Do people foresee a crash in the rental market and it perhaps cascading onto house prices?

I know a handful of people who have managed to negotiate 10-20% reductions off their rent when it came to renewing the lease, all reductions were none covid related (couples still working, not impacted).

Personally most younger workers in my org from down the country have all stopped renting in Dublin or left their house share and returned home, that and the lack of students/tourists will surely drive rents down a lot? Maybe i am wrong but if i was a landlord i would sell now and if i was an investor a buy to let would be one of the last items on my list to invest in.

In Dublin, the rental market has plummeted in the 7 months since just before lockdown for the 1 and 2 bed apartments, with no sign of a floor as of yet considering the 6 week lockdown at least we now have and the eviction ban until the New Year. Supply up hugely as well.

https://www.boards.ie/vbulletin/showpost.php?p=115002444&postcount=1929

thefridge2006

Covid-19 public spending unsustainable without vaccine – Donohoe

https://www.irishtimes.com/news/ireland/irish-news/covid-19-public-spending-unsustainable-without-vaccine-donohoe-1.4386188

Making excuses already for the fairy-tale budget that was never going to work

fliball123

thefridge2006 wrote: »

Covid-19 public spending unsustainable without vaccine – Donohoe

https://www.irishtimes.com/news/ireland/irish-news/covid-19-public-spending-unsustainable-without-vaccine-donohoe-1.4386188

Making excuses already for the fairy-tale budget that was never going to work

Is he not just stating the obvious I reckon they will be able to keep this up for a good 2 or 3 years and hopefully a vaccine will be in play by then. Already Pfizer are on the last stage of trials with their vaccine

PropQueries

Institutional investors bought over 1,000 homes in Dublin in Q3 2020.

"The continued strength of Dublin’s private rented sector (PRS) market was evidenced once again in the three-month period to the end of September with 1,016 homes sold for a total of €470 million to institutional investors.

The largest transaction in the first nine months of this year across all categories of investment saw the Cosgrave Property Group secure about €200 million from the sale of 368 apartments at Cualanor in Dún Laoghaire to Deutsche Bank subsidiary, DWS. Contracts were also signed on the € 145 million off-market sale to DWS of 317 residential units spread over four developments in north Dublin."

Link to Irish Times article here: https://www.irishtimes.com/business/commercial-property/institutional-investors-spend-470m-on-residential-properties-in-latest-quarter-1.4381696

PropQueries

Looks like the Government has come up with a new way to keep rents high for young workers in Ireland. They plan to replace 'reception centres' for up to 3,500 asylum seekers a year with a scheme similar to HAP where they will rent homes from private landlords. For 'private landlords', just change to 'their investor property owning mates'

To the younger workers. I genuinely feel sorry for you. You can't/won't win.

"Local councils would use private rental accommodation to house asylum seekers, in a similar way to how homeless people are housed in private rental tenancies through HAP."

Link to Irish Independent here: https://www.independent.ie/irish-news/asylum-seekers-would-be-given-own-door-accommodation-after-three-months-under-ambitious-direct-provision-proposal-39651296.html

Graham

PropQueries wrote: »

Looks like the Government has come up with a new way.....

Minister for Justice Helen McEntee said the government would look at the recommendation but “at this moment in time it’s not something that I can give a commitment to.”

PropQueries

Graham wrote: »

Minister for Justice Helen McEntee said the government would look at the recommendation but “at this moment in time it’s not something that I can give a commitment to.”

Aw come on You know the purpose behind this 'recommendation'. I'm actually quite impressed. They have the younger workers by the proverbial this time. They have come up with a scheme to keep rents high indefinitely and where they can't complain or they will be labeled you know what.

Graham

If you're going to throw in hysterical posts about proposals and present them as policy, expect to get called on it.

PropQueries

Graham wrote: »

If you're going to throw in hysterical posts about proposals and present them as policy, expect to get called on it.

Ok. I'll take your point. I guess we'll have to wait and see where this proposal goes.

Springy Turf

PropQueries wrote: »

Ok. I'll take your point. I guess we'll have to wait and see where this proposal goes.

Your assertion that the people behind proposals to improve things for asylum seekers are somehow motivated by screwing over young workers is far-fetched, and pretty nasty.

PropQueries

Springy Turf wrote: »

Your assertion that the people behind proposals to improve things for asylum seekers are somehow motivated by screwing over young workers is far-fetched, and pretty nasty.

I'll take the flac. I'll 100% admit it was worded wrongly. I'm just extremely suspect of any Government proposal that may add demand to a market that apparently has supply issues. Especially when there are many other possible solutions that wouldn't impact as much on the supply/demand dynamics of the market.

This proposal has the potential to significantly impact the demand side of the equation with no obvious benefits to either the state, the asylum seeker or the younger worker seeking rental accommodation in our cities.

If a younger worker is thinking of buying, they must compete with both the state and the investment/pension funds for housing. If they're renting they must compete with the state under the long-term lease initiative, HAP etc. and now another version of HAP may be thrown into the mix. Many workers must accept HAP not because they don't work hard but simply because they have no choice because of the government's policy (and it does now appear to be policy) of driving rents ever higher through these schemes.

In fact, I truly believe that this proposal has the very real potential to invite resentment towards this group (not justified on any level) as has already been seen in many villages up and down the country. But, time will tell as they say.

But I'll fully admit I could have worded it differently. So apologies and no offence meant.

Hubertj

PropQueries wrote: »

Aw come on You know the purpose behind this 'recommendation'. I'm actually quite impressed. They have the younger workers by the proverbial this time. They have come up with a scheme to keep rents high indefinitely and where they can't complain or they will be labeled you know what.

i think this comment is extremely offensive.

PropQueries

Hubertj wrote: »

i think this comment is extremely offensive.

See my mea culpa above.

salamiii

unemployment will keep rising.more houses will come on market.more rentals will come out as people move out due to high rents

you looking at the next six months for this to happen


you need to save up cash as the rainy day is coming

stefanovich

salamiii wrote: »

unemployment will keep rising.more houses will come on market.more rentals will come out as people move out due to high rents

you looking at the next six months for this to happen


you need to save up cash as the rainy day is coming

Yes, liquidate all your assets into cash. Stick it in a 0% interest rate deposit account while they devalue the currency.

optogirl

Lads this is hard work. Looked at a house last week in D7. Asking price 265k. No bids in for 5 days so we put in one at asking price. Came back today to say current highest offer is at 310. Yikes.

stefanovich

optogirl wrote: »

Lads this is hard work. Looked at a house last week in D7. Asking price 265k. No bids in for 5 days so we put in one at asking price. Came back today to say current highest offer is at 310. Yikes.

Do you believe the estate agent? Some just make up offers to inflate the price.

Have a budget and stick to it. Call the estate agents bluff.

Moving!

optogirl wrote: »

Lads this is hard work. Looked at a house last week in D7. Asking price 265k. No bids in for 5 days so we put in one at asking price. Came back today to say current highest offer is at 310. Yikes.

I'm seeing a lot of this. The COVID-savings plus low supply are driving sale prices ridiculously high.

cnocbui

stefanovich wrote: »

Yes, liquidate all your assets into cash. Stick it in a 0% interest rate deposit account while they devalue the currency.

That's, a strategy, except make it the stock market and not banks. Anyone who bought bitcoin below €9K this year is laughing today.

optogirl

stefanovich wrote: »

Do you believe the estate agent? Some just make up offers to inflate the price.

Have a budget and stick to it. Call the estate agents bluff.

Is this really a thing? I don't want to believe it is but I feel naive for saying that.....I think we might just leave it there and hope something else comes up in the area.

combat14

At this rate it looks there will be alot of retailers and renters not able to pay their rent/mortgages next year ...

Hard to see banks here giving another 6 months of forbearance.....

Once businesses start going bust there will be a domino affect the likes of which we havent seen so far yet


Government fears Nphet will seek new lockdown after Christmas break

https://www.irishtimes.com/news/health/government-fears-nphet-will-seek-new-lockdown-after-christmas-break-1.4386974?mode=amp

stefanovich

optogirl wrote: »

Is this really a thing? I don't want to believe it is but I feel naive for saying that.....I think we might just leave it there and hope something else comes up in the area.

Yes, happened to me.

stefanovich

cnocbui wrote: »

That's, a strategy, except make it the stock market and not banks. Anyone who bought bitcoin below €9K this year is laughing today.

I'm being sarcastic! ANYTHING BUT CASH

Shelga

optogirl wrote: »

Lads this is hard work. Looked at a house last week in D7. Asking price 265k. No bids in for 5 days so we put in one at asking price. Came back today to say current highest offer is at 310. Yikes.

I bet that's the same house I was looking at, in Cabra? I think the issue there is that the EA significantly underpriced it to begin with, if you look at what similar properties have sold for there recently. Whether this was through incompetence or by design, who knows.

Smouse156

Gotta feel for the poor fella (in number 18) that lost 260k in a year (not realised yes) or could have got the house 260k cheaper. 15/16/17/18 identical and with Glenveagh’s price drops, 15 & 17 sold for 260k less:

https://propertypriceregisterireland.com/?action=search&county=6&property_type=0&date_from=2010-01-01&date_to=2020-10-21&price_from=0&price_to=0&address=Proby+place

And before anyone asks, this website includes the VAT on new builds!

https://glenveagh.ie/download/proby-place-brochure/?wpdmdl=449&ind=1529594520885

Anyway, with poor/slow sales can’t see anything but decent drops to come in the high end of the Dublin market.

However, anything under 500k qualifying for help the Brickie should rise.

optogirl

Shelga wrote: »

I bet that's the same house I was looking at, in Cabra? I think the issue there is that the EA significantly underpriced it to begin with, if you look at what similar properties have sold for there recently. Whether this was through incompetence or by design, who knows.

Yep. Hard to understand why it was priced at 265. To get some interest in it?

Hubertj

Smouse156 wrote: »

Gotta feel for the poor fella (in number 18) that lost 260k in a year (not realised yes) or could have got the house 260k cheaper. 15/16/17/18 identical and with Glenveagh’s price drops, 15 & 17 sold for 260k less:

https://propertypriceregisterireland.com/?action=search&county=6&property_type=0&date_from=2010-01-01&date_to=2020-10-21&price_from=0&price_to=0&address=Proby+place

And before anyone asks, this website includes the VAT on new builds!

https://glenveagh.ie/download/proby-place-brochure/?wpdmdl=449&ind=1529594520885

Anyway, with poor/slow sales can’t see anything but decent drops to come in the high end of the Dublin market.

However, anything under 500k qualifying for help the Brickie should rise.

ugly looking houses for that kind of money! An interesting comparison would be 2nd hand homes in that price bracket in the area. Surely you could get a much nicer home in Blackrock at the €1.2M range.
Also, 3 story would be a no no for me. I lived in a house share once and it was a pain in the hoop up and down all the stairs!