Friday 28 October 2016

Half of all 2016 property deals so far are for cash

Published 04/10/2016 | 02:30

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Half of the property bought in the first half of this year was for cash.

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New figures show that some 10,665 transactions were obtained without a mortgage in the first six months of this year.

The value of the purchases for cash was more than €3bn, thought to involve buying by investors and corporates.

This represents just short of 60pc of the value of transactions in the January to June period, according to figures compiled by estate agents DNG Residential.

Less than €2bn in mortgages was issued in the first part of the year.

Chronic supply shortages mean transaction levels are below those in Northern Ireland and in Britain, Keith Lowe of DNG said.

Sales of properties here are just one fifth of those in the North, he said.

And a separate survey from Sherry FitzGerald shows that property prices rose by 4pc this year, after rising by 1.2pc in the July to September period.

Price growth outside of Dublin is stronger than in the capital, the estate agency said.

Economist with Sherry FitzGerald Marian Finnegan said the crisis in terms of supply had worsened.

There were around 27,800 properties for sale nationwide in July, a fall of 14pc from the same month last year. This represents only 1.5pc of the private stock.

In Dublin, there were 4,600 units advertised for sale in July, down 18pc on the same month last year.

The commuting counties around Dublin and regional centres recorded a sharp decrease in supply during the year.

Prices outside Dublin rose by 1.6pc in the July to September period, and are up 5.6pc in the year so far.

Irish Independent

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