The number of properties available for sale on MyHome.ie rose by 33 per cent year on year. Photograph: iStockI believe that the market will remain robust next year, but the level of price growth will continue to moderate both in Dublin and nationwide, with low single-digit house price growth anticipated for the year ahead. The Irish economy remains well placed to weather the current headwinds of rising interest rates and inflation, which bodes well for the property market.
There will be a good level of second-hand rental properties coming to the sale market as small investors accelerate their exodus from the sector on account of the tax structure and ongoing increases in regulation. Marian Finnegan of Sherry FitzGerald: 'If I had one wish for 2023, it would be a bold policy response to address the supply deficit'After two turbulent years, hopes were high that 2022 would see a return to normality. Unfortunately, it was not to be. The war in Ukraine and the associated economic challenges have created more uncertainty.
Finally, the rental sector remains crippled by historically low supply, with enduring high levels of rental inflation. Over the last few years there has been a material decline in the number of bank sales where mortgages were long in arrears since the 2008 crash. More recently a scattering of these have crept back into the market but it remains to be seen whether this is a reflection of the current situation or the rumbles of a potentially bigger issue beneath the surface. It’s likely to be the former, given exceptionally strong employment levels.
I see a flat first six months with less activity in the new-homes market, especially apartments, with commencements down on 2022 to somewhere in the region of about 20,000 – a long way off what is intended by the Government. There has been a noticeable increase in demand for city-centre properties as people return to the office. Traffic, commute times and overall lifestyle preferences are the drivers of this trend. The appetite to purchase an older home requiring renovation has diminished with buyers seeking turnkey, energy-efficient homes due to the cost of renovation, a lack of available building contractors and rising energy costs.
David Browne, director of new homes at Savills: 'As affordability is restricted, the demand for apartments, duplexes and townhouses will likely increase'Several factors are in play that will underpin the strength of the new-homes market next year, which include a loosening of Central Bank rules from January, along with additional Government initiatives introduced this year.
Soaring building costs, which have pushed up the cost of renovating older properties and have made the banks more cautious about lending money towards the purchase of such properties, are also prompting more house-hunters to pursue energy-efficient new builds. However, there are clouds on the horizon. The volume of price drops on MyHome.ie is rising and a property’s time on the market before a price drop has tightened from 22 weeks to 17 weeks .