Land transaction values soar amid housing crisis
Growth in the residential market has contributed to a 59pc increase in the value of development land transactions in the past year across the Greater Dublin Area (GDA), Cork, Galway and Limerick, according to new figures.
The performance was mainly driven by activity in Dublin and its neighbouring counties of Kildare, Meath and Wicklow, which together accounted for 91pc of the overall value transacted in the period, according to research by Cushman & Wakefield.
In total, €375m transacted across the Greater Dublin Area, Cork, Galway and Limerick in the first six months of 2018, a 59pc increase year-on-year.
Compared to the first six months of 2017, the total value transacted jumped 84pc in Dublin to approximately €321m, and 76pc in the GDA as a whole, as the demand for houses continues apace.
"2018 is proving to be a significant year in the development land market, with strong performances being witnessed in both the residential and commercial sectors," said Cushman & Wakefield director John Donegan.
"One of the key policy initiatives driving the particularly strong performances in the residential sector was revision to apartment standards in March 2018, which has led to greater efficiencies in apartment development."
Overall, the volume of sales decreased by 18pc in the GDA in the opening half of the year, compared to the same period last year. However, this was largely due to a decline in smaller-sized sales, with the total volume of sales under €5m falling by 22pc. Outside of Dublin, Cork is the most active market, with just over €29m in transactions across 30 deals having been carried out by the end of June.
This represents an increase of 25pc both in terms of volume and value when compared to the same period last year.
Activity in the development land markets of Galway and Limerick was relatively quieter in the first six months of the year. While sites in the two cities have been trading on the open market, the majority of activity in the year so far has been localised off market, according to Cushman & Wakefield.
The news comes as figures from the Banking and Payments Federation Ireland show that some 17,337 people were issued with a home loan in the first half of this year, up almost 2,400 on last year.