Average Dublin house in 2015 to hit ?750,000
THE average Dublin house price will hit the ?750,000 mark or higher in 2015, according to 70pc of attendees at an Ulster Bank CBRE Gunne Property Conference yesterday.
Speakers at the conference included Pat McArdle, chief economist, Ulster Bank, Marie Hunt, director of research, CBRE Gunne, and professor Joe Durkan, department of economics, UCD.
While some property experts were more conservative with their prediction for 2015 of a ?500,000 average, Mr McArdle said the higher figure was not particularly startling.
"We have already seen prices rise very rapidly and many people feel this will continue," he said.
In the shorter term, 71pc of delegates expect Irish house price inflation of between 3pc and 7pc during 2006. A majority of 80pc believe that the construction boom will continue for another two to three years.
However, despite the upbeat theme, the conference heard there were some signs of slower activity in the first quarter of 2005, with 60pc citing factors that limited activity, principally lack of demand and labour shortages.
More than half felt that the number of new house completions would be down on last year, but not to any great extent.
In the rental market, more than half the attendees believed that prices would be unchanged in two years' time, but Professor Durkan felt that rents might fall again as house price inflation eased and investors decided to offload empty properties.
In the construction sector, four-fifths expect an increase in land prices within the greater Dublin area. Over 50pc said the business outlook for the next three months was better or much better, while 42pc expected no change.
Planning delays are still the highest negative factor facing the industry, with cost inflation and declining demand sharing the second slot.
And, while developers cited inadequate supplies of zoned land, official figures given indicated a plentiful supply.
The conference heard that demand is being driven by the residential sector and a buoyant economy, with commercial activity and civil engineering relatively quiet.
Looking forward to the future of the property market, delegates were relatively evenly split over a number of areas where SSIA money would be spent.
Investment in property, at 60pc, was the favourite.