The Property Week 30 Nov '09
Value to be had in all markets: Savills Outlook
https://www.propertyweek.ie/news_images/10157_thumb.jpg Roland O’Connell, Director, Savills
"There is now exceptional value in the market and it is unlikely that rents will fall further” - Subscribe
Has anybody got a subscription to The Property Week so we can read this drivel in it’s entirety.
Please post it. propertyweek.ie/
Thats a micron sized “unlikely” and a megazoid “probably”.
Well unless NAMA actually does cause a 10 year stasis.
Expect McDonalds to start serving Brain Nuggets and Flesh fries.
Actually, I don’t think residential rents have a hell of a lot further to go. I live in a nice apartment in a nice area of South Dublin and even if I use a very generous (rent x 12 x 16) formula I get 170k, which seems about right to me. On the market to buy it would be twice that. It is the selling prices that are out of whack big time, not the rents. Just IMO.
Either the Irish economy is banjaxed or it isn’t. If it is there’s no saying how far rents will fall. I shouldn’t have thought the rental market was the kind of market you could talk up because unlike mortgages, leases can always be renegotiated.
885 pm? For wha like?
Well maybe you are right I haven’t looked at rents in a while as I’m too busy but I did notice the asking prices where being awful sticky for much longer than I had.
I still think with the extraordinary supply and Irelands wonderful position the pressure on rents will be mucho huge-o%between%
Units that are rented may not see falls of any great note simply because there’s an artificial bottom to the market provided by the HSE Rent Supplement. Whether that bottom remains this time next month remains to be seen.
The other key point is - those units which are rented. Average rents may not fall a huge amount. Average rents per available unit is another thing.
Expect longer void periods and higher expectations from tenants. More taxes and lower tax reliefs. Oh yeah, it’s all good.
My cousin lives in a nice 2 bed city centre apartment in Hanover, Germany, costs about €300pcm
I’m just saying is all
If you consider that people should spend about 30% of their net income on shelter then you need to be earning €40k+ just to get a really crappy one bed. Frankly jobs that pay that kind of money are becoming increasingly sparse.
Rents have plenty of room to fall but I don’t think they’re going to continue collapsing at the current rate.
Residential rents are still dropping like a stone.
From the last few IPW reports we are showing rents dropping by well over 2% per month. And at the same time the stock of places to rent is still increasing.
irishpropertywatch.com/index.php
I think rents will continue to drop at at this rate for at least another 18 months.
There is far more places available to rent than people who want to rent.
He is an offices director and therefore is writing about that.
Propertyweek.ie just takes articles from newspapers and charges people to access them.
This is what Savills have say about Residential. 25 November 2009
How are those two sentences consistent in the same paragraph. Why would any build more when there is 5 years of supply out there?
They should at least have the decency to contradict themselves in a new paragraph.
Yawn.
“the worst is not
So long as we can say ‘This is the worst’”
From the Savill’s report:
Apparently Savill’s believe that once Mr. Lenihan sits down after reading his speech next week that that is the *end *of the budget. Ditto NAMA, which is ancient history by now, right? Really, what can you say?
Good point - report here:
savills.ie/pdfs/property_outlook/324.pdf
His bit is on page 8 and is specifically dealing with office space and rents.
It will not fall further in actually good places to live. It will crash to the floor in worthless extra-urban townhouses with views over unfinished motorways. People may not want to buy at the ongoing high purchase prices, but e.g., there are only so many higher-quality well-located apartments in Dublin, Cork, etc., . These will continue to have plenty of takers.
This is a lovely comforting notion for owners of ‘quality’ units. It doesn’t really make sense though in a climate of rising unemployment, underemployment and while wages are falling.
Well this is where it all comes back to location, location, location. It’s why Marylebone or Mayfair always commanded high prices even when the IMF was in the UK, or why Altstadt in Munich still has prices going up while other areas that went up in the boom are dropping. An apartment in e.g., Clarion Quay (blocks 1-7, not the others) or Mount St. Annes, Sweepstakes are much more desirable. Likewise apartments next to hospitals will have a higher rent for staff like doctors or nurses.
There may be some drop, but going from €1400 to €1300 in a sought after area is very different to going from €1200 to €700 e.g., DUblin 22 or 24. The country isn’t a commune.
Some people have falling wages and are unemployed; others are making more now than 2 years ago.
