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Prices and rents stabilise in May following sharp April declines

Written by Robert McHugh, on 9th Jun 2020. Posted in Property

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The latest property report from daft.ie this morning shows there have been very clear differences in the trends in the Irish rental and owner-occupier markets since the beginning of the pandemic that are confirmed. 

Prices in the sales market have been particularly volatile, with a steep price fall in April (+5.5% month to month (mom) followed by a large increase in May (+3.7% mom). On an annual basis, this leaves prices down 1.6% year on year (yoy), with price declines being seen in most parts of the country.

This is despite stock levels continuing to fall over recent months. Nationally, there are c.19K properties available for sale, the lowest since October 2006. The stock for sale in Dublin is down 26% yoy.

Rents saw some stabilisation in May following a large fall in April. Rents are still up 1.6% yoy, but this is the lowest rate of growth since early 2013. Meanwhile, the stock for rent rose by 6% yoy in May, but is up sharply in Dublin, reflecting the increase in short-term lets moving on to the long-term market.

According to Goodbody Stockbrokers, "While trends are moving in opposite directions, the rental and owner-occupier markets have significantly less stock than during the last crisis over a decade ago. This should limit the extent of price and rental declines. We are predicting a c.10% decline in both prices and rents in this cycle. With stock levels low, a quicker economic rebound could result in a sharper recovery beyond the crisis." 

Source: www.businessworld.ie

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