IPW Rental Report


#1

1 in 10 rental properties drop the rent this week. I think that could be a record.

From the the 9th to the 16th of November 2008 there were 1,896 rent reductions. The average reduction was €93 per month.

Property Watch

While 10% of properties have been for sale for than 18 months.


#2

Defo noticed a lot of drops in the last 2 days of browsing.


#3

i’ve been tracking rentals in Kilkenny urban area since august when there were 60 properties at and under €800 to rent, during last week it peaked at 92. that’s a 50% increase in three months.
i dropped into an estate agent last week, i told him i needed a house to rent in town for no more than €600, he didn’t blink, he took my details. if he dosn’t get back to me by Christmas i’ll drop in after new year.


#4

Correct me if I’m wrong, but has the ECB interest cut accelerated this? I suppose landlords feel they can afford to drop the rent now.


#5

You may be onto something there, though going by Daftwatch there has also been a substantial surge in the amount of properties available for rent in the past month or so after a brief, probably student related, hiatus.

daftwatch.atspace.com/


#6

Am looking at the moment (north central dublin) and almost everyone is willing to negotiate the asking rent.


#7

474 with at least 1 drop
Average days listed of these properties in now 70 days!

Out of a total of 1,304


#8

0-1 Months 9,950 Properties, Average Rent= €1,197

And idea why this figure is going up? This seems like a bit of an anomoly.


#9

excellent angle, when i read your post i almost said out loud ‘f"£3k i didn’t think of that?!’


#10

I think we are seeing landlord capitulation here. Rent near me has gone down from 1500 a month to 1250 a month in about 4 months.


#11

Yeh you’re right.

Its the Irish BTL way of doing things. If the mortgage rate goes up, he will plant that excess on to the tenant despite the BTL brigade not knowing what a rental market is.

One can safely say, the exact can happen when rates go down. Its just Ireland been different :open_mouth:


#12

Have I missed something or has there been no IPW report since Nov 16th?


#13

It gets worse since last report.

1 in 6 properties have reduced the rent over the last 2 weeks of November and the first 2 in December.
3,413 rent reductions and the average reduction was €130 per month
irishpropertywatch.com/

I expect the CSO figure to show a similar figure in December again.


#14

That corresponds to a drop of 9% in rents and in only one month if the same empirical data is used by the CSO

Fuck me :open_mouth: , that’s deflation !


#15

With the glut of properties for rent and more unemployment and immigration to come rents still have a long way to fall.
If rents fall another 20% in the next few months sales prices are going to have drop massively to get back to sensible yields.
We could be looking at 75% from peak drops, that is some serious deflation.


#16

I can’t get my head around the rental reports we’ve been seeing today. 6% drops in one month is outside of what I would consider to be a reasonable range. Would this have been skewed by high cost properties dropping precipitously?

I’ve seen no landlord chatter suggesting a rush to capitulation yet that’s what we’re seeing.

Has there been a mass exodus of Eastern Europeans leading up to Christmas?


#17

It could just be capitulation at this stage.

Properties are just sitting on the market for months. The average length of time properties remain on Daft is just under 2 months. Nearly 50% have been on the market for more than 90 days.

Landlords are losing 1/6th or more of their rental income so it might just make more sense to reduce the rent by 15% rather play this game of chicken with the market.

I would even go out on a limb and say that rents will drop by 50% in the next 18 months.


#18

9% on top pf 6% is nearly 14.5% in only two months .

If we assume that a lot of the BTL brigade were on IO they have dropped from about 6.5% to maybe 5% with the 3 ECB cuts ( they did not get the full 2.25%) and that is a drop of 22.5% . Therefore rents in that scenario have not dropped as much as interest rates and the landlords margins …if the landlord has no long voids…has widened .

The cost covering argument is quite persuasive for me .

Of course the IO period is only 10 years typically and these guys are 2-3 years into that with repayment looming larger.


#19

This from a poster on AAM which would make more sense.


#20

AAM is infested with late cycle BTL merchants and the move up the ladder to detached country house and let old gaff types .