02 Jan 2018 | 11.25 am
How Many New Dwellings Were Built In 2017?
Analysis from GeoDirectory and Sherry FitzGerald
02 Jan 2018 | 11.25 am
A report on house building in 2017 shows that though 36,200 dwellings were built in 2017 the level of housing demand is still far greater than supply.
The GeoView Residential Buildings Report finds that 36,200 new dwellings were added last year, 1.8% of the total residential stock, but demand outstripped supply and continues to be high, with competition among buyers for existing stock as well as for new units.
The report is published by GeoDirectory, operated by An Post and the Ordnance Survey, and combines information from its own databases with material from the central Statistics Office, and can be downloaded from its website.
Of the new addresses, the overwhelming majority were located in the capital and surrounding counties, with Dublin, Meath, Kildare and Wicklow accounting for 77.4% of the overall total. Leitrim had the lowest number of new addresses in the country, with only 74 properties added to the database in 2017, 0.2% of the national total.
The total stock of residential dwellings in the country in December 2017 was 1,974,300. Out of this overall figure, the report shows that there was a stock of 179,500 apartments, 9.1% of the national total. GeoDirectory classifies an apartment as a dwelling within a building of five or more dwellings.
The report estimates a total of 95,100 vacant dwellings in the country, 4.8% of the overall national residential housing stock. This represents a slight decrease on the previous GeoView report last June, which estimated the vacancy rate at 4.9%. Again, the same areas registering most new units also had the lowest vacancy rates — in Dublin (0.8%) and the surrounding commuter counties Kildare (2%) and Wicklow (2.5%).
According to GeoDirectory, the average national residential property price for 2017 was €262,000, rising from €239,000 in 2016. The report found that Dublin had the highest average property price in Ireland in 2017 at €406,900. Within the capital, Dublin 4 recorded the highest average property price at €735,800, while the average property price in Dublin 10 was the lowest at €196,700 and the only Dublin postcode with an average price below €200,000.
Outside Dublin, Longford had the lowest average property price at €94,800. Longford was also the only county in the country to record an average price lower than €100,000.
Annette Hughes, director of DKM Economic Consultants, who compiled the GeoDirectory report, said: “It is interesting to note that, based on GeoDirectory and CSO figures, the average turnover rate of housing stock has increased from 2.1% to 2.5% in 2017, with new dwelling transactions jumping from 8% to 18%. Despite the notable increase in new buildings, house prices have continued to rise in Dublin and throughout the country.”
Sherry FitzGerald Analysis
In a separate analysis, Marian Finnegan, Chief Economist, Sherry FitzGerald Group, said the average value of residential property in Ireland rose by 8.4% over the course of 2017. This compares to an increase of 5.2% recorded in 2016.
The average value in Dublin rose 8.8%, well up from the 3.7% recorded in 2016. Outside Dublin, price inflation was 7.9% compared with 7.3% for 2016. The regional centres of Galway, Cork and Limerick experienced substantial price growth of 8.4%, 7.3% and 7.4% respectively over the 12-month period.
Finnegan noted that the average value of new home dwellings sold in the first nine months rose by a modest 1% in Dublin, illustrating the positive impact of the ‘help to buy’ scheme on the new homes market.
The latest available data from the Property Price Register shows that just over 37,500 transactions were recorded during the first nine months of 2017. Excluding multi-family/portfolio sales, the figure falls to approximately 35,600, representing an increase of 9% on the same period in 2016. In Dublin, the volume of sales grew by 10%, with approximately 11,400 transactions taking place in the first three quarters of the year.
The volume of new dwelling transactions recorded in the Property Price Register during the first nine months was up 27%, when compared to the same period in 2016. The average value of all new dwellings which transacted during the nine-month period was 10% higher than the same period in 2016. Dublin accounted for 41% of total new dwelling sales, with the volume of sales growing by 36% in the capital. Average values in Dublin grew more a modest 1% over the period.
“Comparing the Property Price Register data to the number of mortgages drawn down suggests that 42% of single property transactions did not have a mortgage attached to the transaction during the first nine months of the year,” said Finnegan.
“An analysis of the profile of vendors and purchasers, who sold their property through Sherry FitzGerald in 2017 reveals a similar pattern to recent years where the buy to let market has seen an outflow of investors. During 2017, 33% of Sherry FitzGerald vendors were selling their investment properties, while investors entering the market represented only 20% of purchasers in the established housing market.
“The success of the help to buy scheme in encouraging the development of starter homes in the market should act as a positive endorsement of how targeted measures can assist in the recovery of a market. Further such measures aimed at encouraging investors to increase the supply of buy to let properties in the urban centres are now urgently required, to facilitate a stabilisation in rental inflation.”
For 2018, Finnegan is forecasting that prices will increase by 6-8% in the established housing markets.