Daft: Rents at lowest level in ten years

[blacbloc2]

When we moved back to Ireland and were looking for rental accommodation auctioneers would tell us sniffily that they didn't deal in the rental market. I now see those same auctioneers with long lists of rental acommodation prominently displayed in their front windows.

[MookieBaylock]

When we moved back to Ireland and were looking for rental accommodation auctioneers would tell us sniffily that they didn't deal in the rental market. I now see those same auctioneers with long lists of rental acommodation prominently displayed in their front windows.

That was common in the Celtic bubble years - I just used the Evening Herald.

[Gimpanzee]

Makes a complete joke of the NAMA assumption of property prices increasing by 10% over ten years.

With residential yields at just 3.4% and rents falling by nearly 20%pa and still a record number of houses available to rent and sale there is no chance of a recovery even in 10 years.

Rental falls are still far in excess of property price falls. That means prices will have to fall significantly faster than just to keep up with rents.

Couple of things that seem odd - how is west Dublin managing to have healthy yields relative to elsewhere? Is it just that the prices have fallen faster than elsewhere? I'd have expected that it would be one of the places worst affected by oversupply.

Also, with property prices 200% above the '97 level, and rents only 20% above - what does that say, if anything about yields in '97?

[zebedee bong]

Looks like domestic rents will fall much further in places....
Boom buyers seethe as units now three for price of one - National News, Frontpage - Independent.ie
Within easy commuting distance from dublin too.

[Harmonica]

Looks like domestic rents will fall much further in places....
Boom buyers seethe as units now three for price of one - National News, Frontpage - Independent.ie
Within easy commuting distance from dublin too.

Indo - It's a case of 'three for the price of one' at the exclusive Capella Court apartments in Newbridge, Co Kildare.

When the gated development first opened in 2007 -- buyers forked out prices starting at €322,000.

What does exclusive mean in that context? Good price maybe even in Newbridge. I know its easy for all of us to be wise in hindsight but 322k in Newbridge

[zebedee bong]

What does exclusive mean in that context? Good price maybe even in Newbridge. I know its easy for all of us to be wise in hindsight but 322k in Newbridge

Exclusive???.. well you get the personalised parking space, within a gated community, exclusivity just became real cheap, mind you it would want to be considering the obligatory Maintenance charges and 2 hour+ rush hour crawl into Dublin centraal.

[MookieBaylock]

Exclusive???.. well you get the personalised parking space, within a gated community, exclusivity just became real cheap, mind you it would want to be considering the obligatory Maintenance charges and 2 hour+ rush hour crawl into Dublin centraal.

Indeedy - we will have the world's best welfare housing in a few years!

[Cael]

I've always said 1998 levels myself so I think that's about 70,000 punts on average

but quibbling over the actual final bottom of the trough is pointless; the main thing to understand is that we are nowhere near the bottom of the fall in property prices and there is still a helluva long way to go - down

QED: NAMA is screwed

Actually, NAMA is not screwed. NAMA almost certain to fullfill its function - which is to transfer the pain of this disaster from the banks and developers and unto the taxpayer.

[cyberianpan]

Actually, NAMA is not screwed. NAMA almost certain to fullfill its function - which is to transfer the pain of this disaster from the banks and developers and unto the taxpayer.

Indeed

You point to an interesting issue there: Nama is so big that it may completely distort the market

The trade off between the over supply & Nama intervention will be interesting to watch

What it definitely seems to promise is a swingeing loss of value for "poor quality" residential units

Quality being a factor of residence size, build quality, locale and location

Location will be the critical determinant here, thus some of the shoddy dormitory things around Dublin will lose ALL their value , The Lucan Legoplex will take an awful hit unless transport improves , certain rural estates will end up empty

Nama will actually end up accentuating this process... and the Nama business plan quite explicitly refers to a "Plan B" ... without saying what it is.

Much about Nama may change..

Which is why watching rental yields and supply proves so important

cYp

[toughbutfair]

Okay - NAMA might end up a disaster but there are positive sides too.

A young person just starting off in the workforce has low expenditure on rent and if they decide to buy a house/apt in a few years they'll get it for cheap and won't have big mortgage. All this helps keep wage pressure down and make Ireland more competitive.

Pluses and minuses.