IPW Rental Report # 7 - 906 reductions, 119 increases

1 in 14 properties for rent reduced the price in the last week alone.
1 in 3 properties have been on the market for more than 7 weeks.

Irish Property Watch

Is this a lot? Do you have trend graphs on this?

Does this prove a weakening rental market? or is it a seasonal thing? (ie students all leaving for the USA etc?)

Brilliant website - by the way - good work!

Consider the knock on implications. It is standard rule of thumb to drop one months rent as void when assessing ralistic net yields (with another month for costs and maintenance). If actual void is rising yields are getting hit by both falling rents and rising voids.

I think shortly we’ll start to see a fall off in the number of drops as things get slightly more realistic. So the trend in terms of numbers isn’t really key, it’s more the figures themselves.

That being said, if we have 7+ week voids at the moment, some people are going to have to smell the coffee really soon. Voids cost more than rent reductions at that level.

yea it really is crazy land lords are leaving there place empty for nearly two months for a sake of a couple of hundred quid

What many landlords perhaps don’t think about is that getting someone in sooner, doesn’t just drop you void this year, but more than likely next year (i.e. treat them well and they will stay) and maybe even the year after that. It is more than worth it to completely undercut all other landlords in a market like this one.

I’m not so sure that there is market clearing rental rate that will absorb the glut in supply nationally. I think long voids with sporadic lettings are probably the norm in many markets. If you have a market where demand is for 700 rentals and the supply is 1000, it doesn’t matter how much you drop the rent it’s not going to increase the demand. Probably see a lot of rent throat cutting amongst landlords chasing lettings, the voids are the killer.

I’ve had a peak on daft.ie rentals in D1 and another city location and I have to say the bee is picking up drops I didn’t expect to see!

I’m also seeing a lot of intersting rental accomodaiton come onto the market that I’d never seen before, lots of choice for the first time in all the 7 years I’ve been renting.

I am feeling very positive about rent dropping more and choice increasing in tandem. So much so I might even move again this summer if the right place comes up and I’ve seen one already!

BTW if any agents are killing time note

Quality PICTURES + LOW RENT + Flexibility = Happy Let

100% behind that especially as a tenant :slight_smile: Landlords who keep the rent stable and low suffer little if no voids I bet. I know we stayed with the guy who kept the rental low and stable for over 3 years.

Completely agree with this and disagree with Calina. So what will these landlords do, why sell of course.

Not true. There are a lot of people in the 20s/early 30s age bracket who are living at home or housesharing. Many of these would move into rented accommodation on their own if rents fall.

I take your point but I’d imagine that the number of people leaving the rental market (economic migrants leaving the country, house buyers taking occupation of a residence) would be close to the number of stay at home potential renters and house sharers. My main point was that rental supply far exceeds demand nationally and will continue to do so. Landlords will have to compete on price to attract tenants driving rents down, in my opinion.

Hopefully so Duplex, cheaper rents are a good thing. And as I said in my post, it’ll take rent reductions in 1/2 bed places to get sharers to make the move into renting an entire unit - let’s face it, few people house share by choice, most would prefer their own space but can’t afford it at current levels.

Just to put some numbers on it, current in Dublin city there are 4679 available places to rent and 3027 available houseshare spots. So you could take a very rough estimate that at 40% of rented places in Dublin are houseshares. Assuming that every houseshare is 2 people (many would be more than that) you could be talking an additional 40% of demand, which is a fair auld bit.

This is not taking into account students who’d share anyway to minimize costs, the proportion of the places up for rent as a unit that’d be rented by a group, length of time for full units staying on daft vs rooms etc, but it might give an idea of the scale of the thing.

Oh, and there’s also the demand factor from people who are currently renting out in the far commuter belt but who’d like to move back to Dublin proper.

Anyway my point is that I reckon if prices come down to sensible levels there won’t be loads of unoccupied places in Dublin city.

By the same token an increasing vacancy rate in house-shares; brought on by former sharers taking advantage of falling rents in single occupancy flats etc. Would probably drive down house share rents. Bit of a spiral of decline scenario. I agree that Dublin City rentals will probably suffer less from voids and rent deflation though.