Ireland tops distressed properties market
More Irish estate agents expect more distressed properties to come to the market, in the current quarter of the year, than in any other country in the world. Ireland and the US are also expected to see the fastest increase in the current quarter.
Almost 100pc of the Irish surveyors, who responded to the latest survey from the Royal Institute of Chartered Surveyors (RICS) are forecasting an increase in the number of distressed properties coming to the market in the three months to June 2010.
However, despite Ireland's high ranking in the survey, the actual volume of such property is low as John Moran, managing director of Jones Lang LaSalle commented:
"There has been a modest increase in the number of distressed assets being brought to the market. The level and amount of transactional activity in this category remains low."
RICS's quarterly global distressed property monitor has forecast that 70pc of the 25 countries surveyed will see an increase in distressed properties hitting the market in the second quarter.
However the survey, which had responses from 466 surveyor offices, found that although the number of distressed properties coming to the market is continuing to rise globally, the pace has dropped, including in Ireland and the US.
In the first quarter, the biggest growth in distressed listings was reported in the US and the Republic of Ireland.
This compares with India, Hong Kong, Australia and China which all reported a decline in the number of distressed properties coming to market compared with Q4 last year.
Surveyors in 20 countries reported that interest in buying distressed properties is continuing to increase among specialist funds. Irish agents concurred, although the rate of increase here has slowed compared to Q1.
"The difference between the growth in interest shown in distressed property assets and the expected growth in the number of properties coming to the market in Q2 is most imbalanced in Ireland, the US and Scandinavia, with the New Zealand market also experiencing low demand relative to expected flow of assets likely to hit the market in the coming quarter," the monitor reports.
It shows that while 100pc of Irish respondents expect increased numbers of distressed properties coming to the market, only about 40pc report interest from specialist funds.
Irish Independent
