‘Severe blockages in planning system’ drive rising prices: Estate agents on the new-homes market

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Estimated shortfall of 72,000 homes in Dublin and strong demand will to push prices higher despite rising mortgage interest rates

Despite high inflation and rising mortgage rates, Palmer-Smith cites the observation of banking lobby group the Banking & Payments Federation Ireland , which said mortgage approvals – “a crucial barometer of future demand,” he says – continued to demonstrate resilience in the market.

“Plenty of purchasers who would have chosen a renovation project or a second-hand home that needed extending have opted to go with a new-build. Some purchasers want the hard work done for them instead of putting money into an older home,” he says. “We are seeing an increase in enquiries for apartments, for example, as in the majority of cases, most people will be better off financially by purchasing their home rather than renting it. This should have a positive impact on the viability of higher density apartment and duplex schemes,” he says.

Palmer-Smith also has an optimistic view: “According to the Banking & Payments Federation Ireland, mortgage approvals, a crucial barometer of future demand, continue to demonstrate resilience despite the spectre of higher inflation and interest rates.” All the industry experts who spoke to The Irish Times provided a positive outlook for the new homes market for the year ahead.Will Coonan, director of Coonan Property

 

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