Housing supply to fall further behind demand as rising costs hit investment, Goodbody warns

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Housing supply set to fall further behind demand as rising costs hit investment, Goodbody warns via IrishTimesBiz

Goodbody said one of the main drivers of the weakening trend was the fall-off in apartment commencements.

Sean O’Driscoll of Cliste Hospitality: “There were a number of hoteliers charging rates that were indefensible”“However, this disguises a significant decline in both August and September, possibly reflecting the recent weaker environment for PRS Much of the pick-up in residential construction has centred around Dublin where foreign funds have invested heavily in PRS apartment schemes. Rising constructions costs combined with higher interest rates is threatening this investment.

On Thursday, the Central Statistics Office will publish its latest housing supply numbers, which are expected to show a continuing pick-up in output. A late surge in activity in the final three months of last year saw overall home completions reach 20,000, on a par with the previous year. The total for this year is expected to be significantly higher, up to 28,000 units, according to one forecast.

In its report, Goodbody noted that all regions experienced an annual fall in housing starts in the third quarter.

 

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