A new report from Ireland’s largest property website, Daft.ie, shows the pandemic appears to have affected Ireland’s owner-occupied and rental markets in
In the sales market, asking prices are continuing to fall but this was a trend that was in train prior to the pandemic. Asking prices fell by 4% year on year (yoy) in quarter two. This followed a 2% yoy reduction in the first quarter, but Munster saw the most notable change in the second quarter, with prices falling by 5% yoy in the second quarter, relative to a 3% yoy gain in the first quarter.
Asking prices in Dublin fell by 4% yoy in the second quarter, a similar pace to that which has been seen since the final quarter of 2019.
However, there has been a continued fall in the stock for sale across the country, falling by 25% yoy (-23% yoy in Dublin). There was an average of just 19K homes for sale across the country in the second quarter, with less than 4K in Dublin, in both cases the lowest level in the data series (going back to 2006).
In contrast, the number of properties for rent is up 21% yoy in June and up 63% yoy in Dublin. An increase in short-term lets coming to the market is a contributing factor and will be a particular issue for certain city centre markets.
According to Goodbody Stockbrokers, "While tighter mortgage lending may constrain buying activity in the short-term, the very low level of stock should eventually put a floor on prices. Our forecasts assume a 10-15% decline in house prices in Ireland up to the middle of 2021. Given the low level of supply, a return to economic growth and an improvement in the labour market as this pandemic passes could bring about a significant rebound in prices."