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    Residential property prices down 0.6% in the year to August

    Residential property prices decreased by 0.6% nationally in the year to August, according to the latest figures from the Central Statistics Office (CSO).
    This compares to a decrease of 0.6% in the year to July and an increase of 1.9% in the twelve months to August 2019.
    In Dublin, residential property prices saw a decline of 1.6% in the year to August – house prices decreased by 1.4% and apartments increased by 0.1%. The highest house price growth in Dublin was in Fingal at 1.7%, while Dublin City saw a decline of 3.4%.
    Residential property prices in Ireland excluding Dublin were 0.3% higher in the year to August, with house prices up by 0.4% and apartments down by 0.7%. The region outside of Dublin that saw the largest rise in house prices was the South-West at 5.2% – at the other end of the scale, the Border saw a 2.7% decline.
    Overall, the national index is 17.6% lower than its highest level in 2007. Dublin residential property prices are 22.6% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 20.1% lower than their May 2007 peak.
    Property prices nationally have increased by 83.8% from their trough in early 2013. Dublin residential property prices have risen 91.8% from their February 2012 low, whilst residential property prices in the Rest of Ireland are 83.9% higher than at the trough, which was in May 2013. More

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    Help-to-buy scheme extended in Budget 2021

    The help-to-buy scheme for first time buyers was extended to the end of 2021 in the Budget on Tuesday.
    The scheme helps first-time buyers with the deposit needed to buy or build a new house or apartment with relief of the lower of 10% of the value of the property or €30,000 available.
    Public Expenditure Minister Michael McGrath signalled what he termed a “radical reappraisal on how we deliver housing.” in his Budget 2021 speech.
    Announcing a record level of funding for the Department of Housing – an increase of €773 million on last year – he said the Government will place a “much greater emphasis on building social and affordable housing.”
    He said his policy will deliver 9,500 social homes next year.
    The Stamp Duty Residential Development Refund Scheme due to expire on 31 December 2021 will also be extended to operations commenced by 31 December 2022.
    Stamp Duty Residential Development Refund Scheme provides for refund of a portion of the Stamp Duty paid on the acquisition of non-residential land where that land is subsequently developed for residential purposes.
    Minister for Finance Paschal Donohoe said that due to the impact on the sector of Covid-19, and also to certain issues that have been brought to his attention since its introduction, he is to make a number of changes to it this year.
    Apart from the extension to the expiration date, the time allowed between commencement and completion of a qualifying project is being extended by six months to two-and-a-half years.
    Michael McGrath allocated €110m for affordable housing and cost rental schemes in Budget 2021.
    Announcing the funding, the Minister said that thousands of people find themselves locked out of the property market due to high rents.
    He announced a total of €5.2 billion to the Department of Housing, Local Government and Heritage next year.
    Mr McGrath said that an extra €500m would facilitate the construction of 9,500 new social housing units in 2021 and a total of 12,750 units will be added to the social housing stock.
    He said there would be €65m to fund deep retrofitting of social housing stock.
    Minister McGrath promised an additional €22m to support homelessness programmes and the introduction of a cold weather initiative.
    He said a basic need in life is to have secure place to live and he said that for too many people in Ireland that need remains unfulfilled.
    Tackling homelessness was a top priority for Government, he said.
    Minister McGrath said that the country was able to deliver public housing when it was much poorer than it is today, and he said they would do this again.
    He said the Land Development Agency would play an important role in the Government’s affordable housing strategy into the future.
    The Minister said that the agency would have over €1.2bn of funding to progress the range of projects already under way.
    Responding to the Budget 2021 announcement, Dr David Duffy, Director of Property Industry Ireland (PII), the Ibec group for businesses working in the property sector, said: “Property Industry Ireland welcomes the commitment in the Budget to housing and capital spending.
    “The reference by Minister McGrath that the housing crisis will be solved through both public and private delivery of housing is positive. PII also welcomes the announcement of an Affordable Purchase Shared Equity Scheme for first time buyers.
    “While the budget allocated will mean that it will have limited impact on making more homes available, PII is ready to engage with the Department of Housing on the structure of the scheme to ensure that families can be in new homes as soon as possible.” More

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    MyHome.ie Webinar – Real Estate Alliance chairman Anthony McGee

    We’re delighted to bring you another MyHome.ie Webinar today.
    In this week’s episode, we chat to Real Estate Alliance chairman Anthony McGee.
    Anthony, who runs REA McGee in Tallaght, discusses the impact of Covid-19 on the business, the launch of their new product BidNow and on the trends he has noticed in the Irish property market in recent months.
    Check it out below…
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    For further details on Real Estate Alliance visit www.realestatealliance.ie. REA McGee’s website can also be found here. More

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    Residential property prices fall by 0.5% nationally

    Residential property prices decreased by 0.5% nationally in the year to July, according to the latest figures from the Central Statistics Office.
    By contrast was no change in the year to June and an increase of 2.2% in the twelve months to July 2019.
    In Dublin, residential property prices saw a decline of 1.3% in the year to July – house prices decreased by 1.2% and apartments increased by 0.4%. The highest house price growth in Dublin was in Dun Laoghaire-Rathdown at 1.3%, while Dublin City saw a decline of 2.7%.
    Residential property prices in Ireland excluding Dublin were 0.2% higher in the year to July, with house and apartment prices up by 0.3%. The region outside of Dublin that saw the largest rise in house prices was the South-West at 4.3% – at the other end of the scale, the South-East saw a 1.6% decline.
    Overall, the national index is 17.7% lower than its highest level in 2007. Dublin residential property prices are 22.7% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 20.2% lower than their May 2007 peak.
    Property prices nationally have increased by 83.5% from their trough in early 2013. Dublin residential property prices have risen 91.4% from their February 2012 low, whilst residential property prices in the Rest of Ireland are 83.6% higher than at the trough, which was in May 2013. More

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    Prospective homebuyers still confident about buying despite Covid-19 impact

    71% of potential buyers are planning on purchasing a property in the next year
    40% expect property prices to fall by up to 10% in the next year
    76% believe the Government could do more to help the property sector
    73% feel safe viewing properties at present
    Prospective homebuyers are still confident about their ability to buy despite resilient house prices and the ongoing effect of Covid-19 to the economy, according to a new survey from MyHome.ie.
    The survey suggests that 71% of prospective buyers are still planning on buying a new property in the next year. This compares with 68% of prospective buyers who were surveyed last May.
    However, consumer opinion regarding house prices has changed since the summer. Now, just 13% of survey respondents believe property prices will fall by over 10% in the next year, whereas last May 37% of consumers predicted that outcome.
    Four in ten consumers now believe that prices will fall by up to 10% in the next year, while half of all respondents believe next year will represent a good time to buy property.
    The survey of 2,716 people also found that three-quarters (76%) of respondents believe the Government could do more to help the property sector.
    The virus is expected to have significant long-term effects, with 61% of respondents believing it will lead to more online processes in general to minimise unnecessary contact. Meanwhile, 23% believe it will lead to quicker sales processes in general.
    In a boost to the sector, 73% of respondents to the survey said they felt safe viewing properties at present.
    Angela Keegan, Managing Director of MyHome.ie, said that the findings reflected the ongoing demand that was evident in the market.
    “Even though consumers have not seen the price drops that many predicted when Covid-19 emerged, demand has stayed strong throughout Q2 and Q3. It appears that many prospective buyers have not been hit by the economic fallout from Covid-19. MyHome.ie had its busiest ever month for website traffic last July, and this is reflected in the fact that seven out of ten respondents are planning on purchasing a property in the next year.”
    However, Ms Keegan warned that it was crucial that construction activity be allowed to continue in the coming months.
    “Our analysis shows that stock levels are down by 22% year-on-year, which is concerning. A healthy, functioning property market needs a good balance of supply and demand, and as such we need to see construction continue unimpeded over the winter if at all possible.” More

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    MyHome.ie Webinar – A chat with Steven Blanc of BidX1

    We’re delighted to bring you another MyHome.ie Webinar today.
    In this week’s episode, we chat to Steven Blanc, Head of Business Development for Bid X1.
    Steven discusses the business, how it has been impacted by Covid-19 and what its plans are going forward including a move into digital private treaty sales.
    Check it out below…
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    You can check out all the latest properties available from BidX1 at www.bidx1.com More

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    Housing market resilient in face of Covid-19

    Asking price inflation up 1.2% nationally in August compared with Q2 2019
    Dublin inflation up by 0.3%; rest of country up by 1.5%
    Strong quarterly inflation recorded
    Demand likely a combination of high interest from those with mortgage approval and shortage of stock
    Annual house price inflation has risen by over 1% despite the impact of Covid-19, according to analysis from leading property website MyHome.ie and Davy.
    Key findings:
    Region
    Mix-adjusted asking price
    Annual % change (Q2 2019 – > August 2020)
    Quarterly % change (Q2 2020 – > August 2020
    National
    €280,000
    +1.2%
    +4.3%
    Dublin
    €383,000
    +0.3%
    +2.9%
    Ex-Dublin
    €234,000
    +1.5%
    +4.7%
    Asking price inflation rose by 1.2% nationally compared with Q2 2019, by 0.3% in Dublin, and by 1.5% elsewhere around the country.
    The rise in quarterly asking price inflation has been even more pronounced – by 4.3% nationally, 2.9% in Dublin and 4.7% elsewhere around the country.
    This means the mix-adjusted asking price for new sales nationally is €280,000, while the price in Dublin is €383,000 and elsewhere around the country it is €234,000. Newly listed properties are seen as the most reliable indicator of future price movements.
    Conall MacCoille, Chief Economist at Davy, said: “The MyHome data shows pricing has held up during the summer months; the negative 3% inflation rate seen in Q2 2020 now seems an aberration, driven by the small numbers of vendors prepared to put their homes on the market during the exceptionally uncertain period of the lockdown. Looking ahead we think prices will be broadly flat in 2020, or see marginal declines, but the impact of Covid-19 on the housing market could have a longer, slow burn impact than many appreciate.”
    Angela Keegan, Managing Director of MyHome.ie, said the increase in asking prices was likely a combination of people who already have mortgage approval moving to secure properties, and a shortage of stock. “One of the many negative effects of Covid-19 has been the decrease in construction output, which has had significant ramifications for the property market. Anecdotally we are also seeing people who have mortgage approval acting fast to secure properties and this, added to the fact that stock levels are low, is driving asking prices upwards.” More

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    One in 10 property sales renegotiated during Covid-19

    About one in ten property sales was renegotiated due to Covid-19 with an average price reduction of 3%, according to a survey of over 260 estate agents nationwide carried out by the Society of Chartered Surveyors of Ireland.
    About two thirds of practitioners said property values had remained unchanged compared to the situation before the pandemic and the subsequent economic shutdown.
    28% said prices had declined with 6% saying they had increased.
    Figures from the Central Statistics Office last week suggested that annual property price inflation nationally practically came to a standstill in June at 0.1%. Dublin prices were down 0.7%.
    The volume of transactions in June dropped by a third compared with the same month last year, the CSO figures indicated.
    A separate set of figures from the Banking and Payments Federation showed that mortgage drawdowns amounted to €1.5 billion between April and the end of June, down 35% on the year.
    About three quarters of estate agents surveyed by the SCSI said they had experienced at least one failed transaction as a result of the pandemic.
    It is estimated from the survey findings that about 12% of sales fell through as a result of Covid-19 and the associated economic shock.
    SCSI Vice President, TJ Cronin – a Cork based estate agent – said the findings underlined the resilience and the adaptability of the property sector, but he warned that the outlook remained challenging.
    “Activity levels have been brisk due to pent-up demand. Confidence within the house purchasing market remains strong, especially among those who have been unaffected financially by Covid-19 or those that had finances in place.”
    “However new mortgage approvals and drawdowns are down, and the salaries of home purchasers are likely to be impacted as a result of Covid-19,” he added.
    On the rental side, the survey found that on average 8% of tenants had not met their monthly rent obligations due to Covid-19.
    Just over a third of these had provided satisfactory evidence of inability to pay to their landlord.
    The SCSI warned of a sharp rise in rent arrears with the removal or reduction of the pandemic support payments. More