Daft Q2 Property Report

Sections of interest from the report...

• The average price of a second-hand property in Ireland declined by 1.6% during the second quarter of 2007. This suggests an annual fall of 2.7% since January 2007 – in line with forecasts for the entire year.

• Some anxiety prior to the elections (fuelled by speculations concerning the stamp duty reform) undoubtedly held back a handful of potential buyers. Yet there is little evidence that this had much of an impact on prices. It is more likely that a rush to sell investment properties, driven primarily by rising interest rates and fears of price depreciation, have created a glut of excess supply at the time of falling demand.

• The core issue here is affordability. Basic estimates suggest that the median per capita disposable income in the country today stands at around €31,300 per annum. Factoring in the savings rates and using a 4.5:1 ratio of disposable income to loan value, a median household entering the market today can afford a mortgage of between €380,000 and
  €400,000. The stamp duty, legal fees and costs of moving the household and upgrading properties cut roughly 15 percent from the affordability threshold.

• This is a far cry from the latest asking prices – according to Daft’s statistics, the average family dwelling in Dublin city ranges from €485,000 to €518,000 for a three bed and from €671,000 to €734,000 for a four bed property.

• Outside Ireland's cities, though, it is Wicklow which remains the most expensive location in the country, with five bedroom properties outside the main towns in the county averaging €828,000.

• Cork's towns contains some of Munster's most expensive properties, with the average price for five-bedroom properties as follows Clonakilty €552,203, Bantry €492,333
  

All of this suggests that we are not likely to see a return of buoyant
housing markets any time soon and that the rally in asking prices we’re
currently seeing will not last.

Report is available here