The latest information from the Government’s Dublin Housing Supply Task Force shows that housing construction in Dublin fell significantly in the third quarter.
The number of units under construction fell 20% year on year (yoy) to 5,915. Within this drop off, houses under construction fell by 14%, with apartment construction down by 26%. Dublin city has seen the largest decline, with the total number of units under construction for houses and apartments down 49% to 1,185 units.
While Dublin city saw poor housing activity, both Dun Laoghaire Rathdown County and the South Dublin County also had a falloff in units under construction from last year, respectively down 15% and 12%. Fingal County’s units under construction saw a modest pickup relative to the same period last year, up 4% in the third quarter.
Goodbody Stockbrokers believe planning permissions shine a positive light on Dublin’s housing market. In the third quarter, the total number of permitted units were up 25% yoy to 45,335, with Dublin city permits up 36% driven primarily by permits for apartments, up 52%.
In December of last year, Minister Murphy expressed his wishes to remove building height regulations, fast forward 12 months and this change has only just come into force. Given Ireland’s low apartment rates relative to the rest of the EU, Goodbody expect to see a faster conversion rate of permits to apartments under construction in the upcoming year.