Housing sold but left vacant - Why?

property-market-sentiment

#1

Wondering if this is becoming a thing or not. It’s easiest to spot with Houses out and about, not so much apartments.

House goes up for sale > Sale Agreed > Sold. Then continues to lies vacant. Simple as that.

If this is a thing, then what is at play?

Touched upon it in other thread, something seen in the US and Canada with Chinese “investors”.

There is one thing having specuvestors pump up the market but they at least let these properties out to “wash their face” as per the days of yore when @2Gaffs & Co ruled the world, we got some supply eh, but buying up random gaffs here and there and leaving them empty, that’s a whole other level of insanity in this witches mix of a “property market”.


#2

Hadn’t heard of this in Ireland.

Have heard of apartments vacant as landlords (REITs, etc) not willing to drop rent price to fill it as this would devalue their portfolio.

We also have empty houses across the country where parent’s, etc have died and kids don’t want it/can’t afford to do it up, but also don’t want to sell it. Usually these are very old and fall to disrepair quickly


#3

I’ve seen this with apartments in London. Lots of overseas money looking for a “safe” investment, outside their own country. Property might be an illiquid investment but it’s far more illiquid if you throw a tenant into the mix


#4

Let’s call this post-sold-vacant housing stock. IT will be distributed across the place but typically easier ot spot in housing estate and higher density areas. This is curtain twitching property watching. The stuff you notice walking the dog, driving about. Oh look it sold. Oh look it’s still empty 3 months later. I do not imagine it is tracked anywhere other than this style of anecdotal observation.

It may be a thing. It may not be a thing.


#5

I think it is a thing, and becoming a bigger thing.

My guess is as above, cash rich investors looking for a home for their money in a low interest rate environment. I’d say it is far from just foreign money as well. Plenty of Irish cash sloshing about.

With plenty of media articles about demand on the rise and supply still chronically low, investors happy to leave the property empty hoping for 3-4% per annum capital gain without the attendant hassle/risk of a tenant.

It’s the unintended consequences of RPZs/strengthening tenants hands playing out in the market.


#6

Banks offering paltry interest rates on savings likely the reason if it’s happening.

Dysfunctional across the board. We’re still unwinding from 2008.


#7

I think it may also be partly explained by one of the RPZ no rent increase above 4% exemptions being if property has not been let in previous two years.

i.e if you buy a property that was most recently rented out below market value, there is a clear incentive to leave it vacant for 2 years since end of last tenancy.


#8

Negative interest rates on large balances will drive some money into land banks and property banks.


#9

Vague recollection of Chinese attitude towards 2nd hand property - they view it the same as a 2nd hand car and this was part of the reason for Chinese ghost cities - the new apartment / investment will depreciate if I rent it or live in it because it won’t be new anymore.