Increases in New Dwellings Still Short of Requirements
Commenting on the latest CSO New Dwelling Completions for Quarter 2, 2019, IPAV, the Institute of Professional Auctioneers & Valuers, said the continuing and welcome increase in the number of new dwellings, up 11.8% on the same period last year, is likely to be one of the contributing factors to the steady slowing in house prices, particularly in urban areas where three quarters of the completions are taking place.
Pat Davitt (pictured), IPAV’s Chief Executive, said: “Nonetheless, it’s likely that the number of completions for the year will struggle to reach 20,000 even though demand is still strong. Given demographics, demand should be even stronger but young aspiring home buyers are part of a now international trend where owning a home has become a lot more difficult than for previous generations.”
He point out that the increase of 15.5% in the number of single dwellings between Q 1 2018 and the same period this year is evident throughout the country.
“However, the increase in the number of apartments being built – from 487 to 758 between Q2 2018 and Q 2 2019 should be in the thousands rather than hundreds,” he added.
Pat Davitt said the sluggishness in the price of second hand homes was impacting those wishing to move to a larger home.
“The typical movement of someone selling and moving to possibly a bigger house was achievable in the market over the past two years but has stalled due to lethargy in second hand home prices.” He continued: “Prices in many areas of the country, in stark contrast to urban areas, are still below the cost of building.”
