SCSI report shows a stabilising property market

SCSI report shows a stabilising property market

The average prices of family homes in Dublin stabilised and marginally increased in 2012 while there were further declines in house prices around the rest of the country, albeit at a slower pace than 2011, according to the Society of Chartered Surveyors Ireland (SCSI) annual survey of its estate agent members.

The SCSI Annual Property Survey suggests that average prices of second-hand three and four bedroom semi-detached family homes in Dublin increased by 2.7% and 1.1% respectively in 2012, compared to declines of 12.6% and 13.6% in 2011.

  • In Leinster, the average price of a second-hand 3-bedroom semi detached house declined by 7.7%. This compared with a 16.8% decline in 2011.
  • In Munster, the average price of a second-hand 3-bedroom semi detached house declined by 7.6%. This compared with a 9.3% decline in 2011.
  • In Connacht, the average price of a second-hand 3-bedroom semi detached house declined by 7.1%. This compared with a 15.2% decline in 2011.

The SCSI said that the mortgage interest relief deadline stimulated demand in the final quarter of the year and that a lack of supply of family-type homes, particularly in Dublin, led to modest price increases in certain areas.

Roland O’Connell, president of the Society of Chartered Surveyors Ireland said: “How we deal with the legacy issues under our control will have a major bearing on the future of the property market in this country. 2012 was very much a year of transition with increasing levels of both commercial and residential transactional and rental activity being experienced by a growing number of agents in different sectors.

In Dublin, rents for prime third generation offices declined to €310 per sq metre in 2012 from €320 in 2011;

According to the SCSI/IPD Index, 2012 was also the first year of positive returns for the Irish market since 2007. However, activity levels in the commercial property market were relatively low in 2012, particularly in relation to older stock in secondary locations.

  • In Dublin, prime city retail rents declined to €4,135 in 2012 from €4,532 in 2011;
  • In Leinster, prime city retail rents declined to €303 per sq metre in 2012 from €374 in 2011;
  • In Munster, prime city retail rents declined to €907 in 2012 from €974 in 2011;
  • In Connacht, prime city retail rents increased to €1,820 in 2012 from €1,813 in 2011.

O’Connell said that while market rents experienced further declines in 2012, Foreign Direct Investment (FDI) companies were continuing to drive demand. He also said that the lack of supply of new prime stock and the availability of finance remain the key issues in terms of a broader stabilisation in the commercial market.

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