Thursday 19 October 2017

Property sales are running at 50pc 'normal' rate

Detached dwellings accounted for the largest proportion (43.1pc) of the Irish housing while apartments comprised 9pc of the total
Detached dwellings accounted for the largest proportion (43.1pc) of the Irish housing while apartments comprised 9pc of the total
Mark Keenan

Mark Keenan

TURNOVER of Irish property is at just 50pc of what is considered "normal" for a healthy housing market.

Just 2pc of Ireland's total housing stock of two million properties changed hands last year, but 4pc turnover is usual for a functioning market.

The data reflects the shortage of property to market in Ireland, and may also highlight relatively tight credit for home purchasing, as well as a lack of financial resources to acquire property.

This compares with 6pc turnover in the UK - where demand is high and prices have been increasing as quickly as Ireland's.

Dublin experienced the greatest turnover in housing stock in 2014, with 13,588 transactions in the year (2.5pc). Monaghan (1.2pc), Donegal and Tipperary (both 1.3pc) had the lowest rates of housing turnover in the country for the period.

According to the first study of Irish housing stock by GeoDirectory, the geographical data division of An Post, the surprise result was that Cork had the highest amount of building under way.

Cork had 12pc of all buildings under construction in the country, while Donegal and Dublin (both 11.8pc) were joint second.

Building activity remained depressed in Roscommon (0.8pc) where only 29 buildings were under construction, and was equally modest in Sligo and Longford (both at 1.1pc) where just over 40 buildings were under construction in each county.

Commenting on the report, economist Annette Hughes director of DKM Economic Consultants said: "By using the data from the Property Price Register, the CSO Census of Population and the GeoDirectory Database (of addresses) we have a unique insight into the residential building stock in Ireland. One key statistic which the report highlighted was that the national average housing turnover rate in 2014 was 2pc, well below what would be deemed to be a more normal housing turnover rate of around 4pc."

The report shows that Dublin had a below average housing stock relative to its population at 419 dwellings per 1,000 of the population.

This also reflects the capital's smaller share of total Irish dwellings (26.4pc) relative to its share of the total Irish population (29.7pc).

Detached dwellings accounted for the largest proportion (43.1pc) of the Irish housing while apartments comprised 9pc of the total.

Dublin had the highest residential density per square kilometre (581 dwellings) followed by Louth with a substantially lower number(63), followed by Kildare (47). Meantime, Leitrim had the lowest at just 12.

Irish Independent

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