Dublin Property News

Claims that investors are pricing first-time buyers out of the property market are non-sensical, according to the Irish Property Owners Association. I.P.O.A. spokesman Fintan McNamara says estimates by some politicians and estate agents that investors are buying up to 25 to 35 percent of new housing stock are way off the mark. "Ireland has the smallest private rented sector in the EU and claims that the recent reduction in capital gains tax is fuelling house prices is wild exaggeration", he said. "In fact the present tax structures applying to the private rented sector are a strong incentive to property owners providing low-cost standard accommodation to quit the market".

Since it's formation in 1993, The Irish Property Owners Association (I.P.O.A.) has gone from strength to strength in numbers - and influence. They are a nationwide organisation and represent members on any platform necessary to defend the rights of property owners in the private rented sector.

Prior to 1993, many laws, bye laws and regulations were introduced and property owners just had to 'grin and bear' it. But now, owners can have the strength of the I.P.O.A. behind them and no longer stand alone. The I.P.O.A. aims to develop strength in numbers and to become one of the most influential representative bodies in Ireland.

Since it's inception the I.P.O.A. has initiated meetings with local authorities, government departments and semi-state bodies. It has had discussions with ministers on many occasions and has made regular substantial submissions - particularly to the departments of the environment and finance - on behalf of Irish property owners.

The I.P.O.A. is currently working on: advertising discounts with newspapers, preferential insurance rates for members, building suppliers discounts for members and the provision of a panel of legal advisors for the benefit of the members.

Martin Davis - Total Property Management has direct experience of the positive attitude and support of the I.P.O.A. and has reason to be thankful to I.P.O.A. staff for solving what could have been quite a serious problem.

Dublin Four Courts

Reports from major Dublin auctioneering firms indicate that the spring selling season is starting with prices up 5% to 10% since Christmas. Increases are most noticable at the lower end of the price scale with many first time buyers scrambling to secure a foothold on the bottom rung of the property ladder before the continueing price rises, which are predicted by leading experts, leave them 'high and dry'. This week enquiries recorded by auctioneers from homeseekers in the greater Dublin area are up by some 25% on the same period last year and many Dublin auctioneers report a growing number of potential purchasers chasing a relatively thin supply of properties. There has been a particularly dramatic increase in the price of secondhand apartments. Most second hand city centre apartments sell within days of coming on the market and some achieve well in excess of the initial asking price. The upward trend seems set to continue well into 1998. For those seeking investment properties rents are increasingly firm and most well presented rental properties do not remain on agents' books for long.

A huge amount of apartments have been built in the Dublin area over the past three years and this building boom looks set to continue for some time to come. Demand has kept pace with supply and in many cases almost entire developments were sold 'off the plans'. A prime example of this was the Cosgrave Brothers project at Pembroke Square on Grand Canal Street in Dublin 4. Situated beside the Kitty O'Shea landmark pub this development of 201 upmarket one, two and three bedroomed apartments was sold out shortly after the launch. Many of the units were bought by investors and their confidence was rewarded by a strong demand from prospective tenants.

Investors were particularly in the market over the past twelve months buying up to 40% of new apartments and at least 10% of new houses. Bricks and morter became the fashionable investment in 1997 as people with a bit of cash to spare and good borrowing power sought to buy themselves 'a pension'. Investors also bought heavily in the second hand market and both new and second hand purchases were inspired by the strong demand for rental property in all areas of the city.

The average cost of a second hand house in Dublin is now IR£ 100,000.00 while the average new home - a three bedroomed semi detached unit - costs around IR£ 96,000.00, up from around IR£ 76,000.00 in 1996 and prices are rising by the month.

The IAVI survey predicts that the average new home will break the IR£ 100,000.00 mark by the middle of 1998.

Prices in the more 'sought after' areas are rising at an alarming rate and many apartments in the Ballsbridge area, for example, have doubled in value in the last two years. When they do come on the market they tend to sell almost overnight. Continueing low interest rates mean that the Dublin property market is unlikely to 'cool down' in the next 12 months as Ireland moves towards the Single European Currency (EMU).

A large number of senior executives are transferring to Dublin either on secondment or long term and seeking 'top drawer' rental properties. These tenants are prepared to pay from IR£ 1,000.00 to IR£ 2,500.00 per month for quality accommodation but in return they demand very high standards. There is a shortage of rental properties in the IR£ 400.00 to IR£ 800.00 per month range. The continueing strong demand for quality rental properties by a large pool of potential tenants, allied with strong appreciation in values, makes Dublin residential property a very attractive investment vehicle for the forseeable future

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