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Housing output to decline through 2011

Housing output in Ireland will continue to decline through 2011 as the country works through a glut of properties built during the construction boom, Goodbody Stockbrokers said.

House completions will probably decline to 12,000 this year and could fall below 10,000 in 2011, Dermot O’Leary, chief economist at Dublin-based Goodbody, said in a report today.

Output fell by 48pc to 26,820 units last year, he said. Builders completed about 90,000 units in 2006.

“Tighter credit conditions continue to be an issue for both developers and potential homeowners, but there is also a need to curtail new supply until the vacant housing stock is reduced,” O’Leary said.