CSO - Rents increase in October by 1.3% (3.7% ytd)

Sure. But 10,000 units is very large number when compared to the number of properties currently available on the rental market. I agree that this number could be absorbed by the market over time, but it is likely to be a drag on rental growth.

The econometric study in the second Bacon report,
showed how the “expected price of housing tomorrow” grew in importance during the boom.
In fact, if memoery serves me correctly they found it became the main parameter in the determining their R-squared.

The rental yield was but a small factor as many investors didn’t see the “additional wage” or rent as adequate compensation
for the work involved in being part-time landlords, but expected short-term capital gain made it appealing.

Short-term capital gains are obtained when EXPECTED demand is or will be strong for a commodity,
driving up the incentive to buy now rather than later.
Where we have the “perception” that more potential homeowners will be excluded from the market over time,
its difficult to generate positive expectations around short-term capital gains.

Increasing yields on their own will not suffice - in my opinion this is because of the leverage used in housing.

I’m having difficulty opening the PDF, but the summary suggests that rents are down in Dublin over the quarter, and 0.1% up nationally, well shy of the rate of inflation.

Link to Daft.ie

Yes, I am surprised.

From my own experience rents have gone up 18-23%. But my knowledge of the market is limited to D2 & D4.

Maybe I am to cheap;)

I am also surprised with the continued drop in supply.

Something is not quite right with the Daft Index.

https://i292.photobucket.com/albums/mm9/Coles-01/DaftIndexQ211.jpgQ2-2011

https://i292.photobucket.com/albums/mm9/Coles-01/DaftIndexQ311.jpgQ3-2011

https://i292.photobucket.com/albums/mm9/Coles-01/NewDaftIndex.jpg

The change in November 2007 (-5%) looks a bit too severe so there may be an error in the new index?

Eitherway, I don’t think there’s any evidence that rents are rising, and with the interest rates dropping it’s likely that rents will continue their slide over the winter.

I think that is a bit of a leap.

There is currently little downward pressure on rents given reduced volumes are down.

And according to the survey rents have been reasonably level for the last 2 years.

However that might all change with the budget.

Is any one else having difficulty downloading the full PDF?

bump

Has anyone actually read the report!?

yeah, some interesting nerd stuff
what do you need to know
summary below
A tale of two irelands

Thanks Johnny. I resolved my technical issue! Goodbye Firefox, Hello Chrome.