Supply and demand
Published 22/01/2010 | 05:00
Dublin's housing market is experiencing a much lower oversupply of housing compared to the rest of the country. According to Daft.ie, the supply of second-hand homes in the capital at the end of December was 5,800. No figures are available for new homes, and of course there is also the unknown quantity of apartments that developers and their receivers are renting out as they wait to recover more money to pay off the banks.
For instance, beleaguered developer Liam Carroll is estimated to have more than 700 apartments rented out.
According to Maynooth researcher Rob Kitchen, the oversupply in Dublin is likely to be absorbed within three years, but in the rest of the country this may take longer.
Estate agents are more optimistic. A nationwide survey by Real Estate Alliance shows 30pc fewer homes on the market now than 12 months ago. In the second-hand sector it estimates the supply of apartments fell 19pc, bungalows by 32pc, detached homes by 35pc, terraced houses by 18pc, and semi-detached homes by 34pc.
Alliance chairman Michael Boyd attributes the low stock levels to the decisions of families who postponed moving houses as well as sales of existing stock.