This year holds diverse predictions for the property market depending on which type of property you’re looking at, according to property consultants Savills Ireland.
For example, mature city homes have just about fallen as far as they’ll go but the likes of city apartments could fall another 20% in value, it said.
Savills say that while some areas have bottomed out with a degree of equilibrium between the number of buyers and sellers, others are largely unsupported by demand and could still fall by as much as 20-30%.
According to Ronan O’Driscoll, Director of Residential at Savills Ireland, mature city houses (other than trophy homes) now have values virtually at the bottom, particularly in Dublin with values holding at current levels and competitive bidding causing modest growth for some properties.
Apartment values are continuing to fall, varying from a further drop of up to 20% in challenged outer suburban and rural town locations to -5% for better located city apartments.
For holiday homes, there is virtually no market other than premier properties with sea views in the very desirable holiday spots.
Values could fall by up to a further 30% in this sector in the less popular/oversupplied locations. Most properties that sold in 2011 were to cash buyers, said Mr O’Driscoll.
“The rental market continues to thrive in the cities as people continue to prefer renting rather than purchasing. Rents began to rise last year and this will continue with rents to rise by 5-10% depending on location within cities.”