Castle market review june 2013


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Castle market review june 2013

  1. 1. Hope Returning to the Dublin Property Market? 2013 – The Year So Far
  2. 2. €0 €100 €200 €300 €400 €500 €600 €700 €800 €900 €1,000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Stronger Start To 2013 Sales Volume Up 15% on First Half of 2012 Liquidity Returns Residential property worth over €1 billion sold in Dublin in first half of 2013. Some semblance of a normal functioning market. Increasing Prices Average price increased from €282,000 to €309,000 (+9.4%) as prices firm up with consistent demand and moderate sales levels Minor Increase in Volume No major increase in the number of sales in 2013, showing there is still a chronic shortage of supply despite price rises. New Years Rush Q4 2012 higher than usual seasonal swing due to the withdrawal of mortgage relief. Unlikely to be repeated in 2013.
  3. 3. Prime Property Picking Up More +€1 Million Homes Sold Q1-Q2 2012 67 75 And at higher average values: €1.9m versus €1.75m Q1-Q2 2013
  4. 4. Walford, Dublin 4 Sold March for 2013 for €14 million
  5. 5. Big Buyers Back In The Market Georgian Gems and Modern Mansions Coolbawn, Ailesbury Road, Ballsbridge Sold May 2013 for €2.5 million 51 Orwell Park, Rathgar Sold April2013 for €2.4 million Abbotts Hill, Malahide Sold April 2013 for €2.1 million 55 Merrion Road, Ballsbridge Sold March 2013 for €2.26million
  6. 6. Investors Buying Apartment Schemes 420-Unit Clancy Quay Sold For Record-Breaking €60 million
  7. 7. Watching The Trends Demand versus Supply Supply Demand Demand Strong and Improving Buyers returning to the market, banks beginning to lend and stability encouraging investors and weary buyers back into play. Chronic Lack of Supply Supply however remains constrained. Households in negative-equity or general unwillingness to sell at new pricing levels is keeping homes off the market. Self-Perpetuating Cycle Many households thinking of moving but cannot find anything to buy due to lack of properties on the market and extreme competition. Seller Stalemate.
  8. 8. Watching The Trends Buyers Returning To The Market – Who are they? Patient Renters Sold up before or during the bust and have bided their time before re-entering the market. Come with cash in hand and ready to buy. Downsizers Kids have moved out and they are taking advantage of the upswing in prices to sell their 4-5 bed house and buy a more manageable 2-3 bed Upgraders Have held out as long as possible in their current home, finally trading up for more space for growing family First-Time Buyers They‟re back.Once they‟ve jumped through all the mortgage company hoops, FTBs are keen buyers of now once again affordable Dublin areas
  9. 9. Watching The Trends Property In Demand – What are they buying? Family Homes Big demand for good-sized family homes from Upgraders but also Downsizers hitting the market from both ends. Family Areas Demand is not just strong for traditional prime neighbourhoods. Almost all family-friendly suburbs are in demand from upgraders and FTBs. Apartments Apartments are selling, albeit slowly and at still suppressed prices. But investors are swooping back in to pick up bargains in strong rental areas. Central City Neighbourhoods Households are coming back to their traditional family roots, returning from the cheaper suburbs to central Dublin areas that are once again affordable
  10. 10. Watching The Trends The New Mortgage Market – Who‟s lending? AIB AIB have been lending throughout the last few years but criteria are high. Up to 92% loan-to-value available. Permanent TSB PTSB are back in the lending market and busy marketing new loans. Lending up to 90% loan-to-value. Bank of Ireland Tentatively giving new loans but getting some bad press over charging full interest on „split-mortgage‟ agreements meant to help struggling existing customers. KBC Bank Back in the market properly having increased their maximum LTV from 80% to 90% for FTB and non-customers. Hold on to that tracker! Homeowners have been putting off moving if they would risk losing their lucrative tracker mortgage. Meanwhile banks are desperate to get rid of these unprofitable rates wherever possible. Only recently are many banks easing up and allowing homeowners to sell and take their trackers with them. This has helped get the market moving in certain areas but it is slow and isolated. What about existing mortgage customers? What about Negative-Equity? Many homeowners in negative-equity having been sitting tight, paying their repayments and resigning themselves to their existing home. However, some banks are allowing arrangement of new negative-equity loans, but they are rare. Only 175 had been agreed up to June 2013 from banks including AIB, Bank of Ireland, Danske and PTSB. Danske Bank Danske are reportedly lending but LTVs of only 50-80% lock out most FTBs and non-existing customers.
  11. 11. Watching The Trends 2013 and beyond – What we see happening next? Uncertainty Remains Economic and financial uncertainty will keep the country, banks and homeowners weary about borrowing and lending. No New Boom The market is still working itself out and any rapid upswings are isolated and short-term. Increased supply will slowly match demand, especially if the banks start their sell-offs. Return To Normalcy Prices in prime and popular areas are returning to long-term norms, having almost certainly over corrected in the bust. Time to move? Households always need to move, whether relocating, upgrading or expanding. In the last 2 years any move was a risk but that has now been eliminated as normal trading resumes. We believe there the market will continue at a steady pace but no rapid rise or fall should be seen in the near to medium term. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
  12. 12. Castle Estate Agents Changing The Face Of Estate Agency In Dublin About Castles Castle Estate Agents were founded in 2004 with one very clear goal: “To become the best in the industry” As we approach 10 years in business, we believe we are providing the best service to homeowners in Dublin. Our goal is to provide the best service in every possible way has been a huge success with our clients and we are gaining happy and loyal customers every single day. Fastest Growing Agent in Dublin While other agencies are still closing offices and losing agents, we are opening new offices and hiring more expert and professional agents. Our brand of customer service and market expertise is a hit with our customers. We are the No. 2 Most-Active Agent in Dublin We are the No. 1 Most-Activein over 40% of our key areas Including Dublin 6W, Dublin 12, Dublin 16 and Dun Laoghaire and catching up across Dublin 8, Dublin 14, Dublin 24 and South County Dublin. In July 2013 we open our first Northside Office in Glasnevin So now we cover the whole of North and South Dublin, County Dublin and surrounding Counties. Bringing our acclaimed service and expertise to the whole city.
  13. 13. Castle Estate Agents Changing The Face Of Estate Agency In Dublin Contact Your Local Office Today North & West Dublin Office 12a Terenure Road West, Terenure, Dublin 6w 01 4900 700 South County Dublin Office 4 Old Dublin Road, Stillorgan 01 217 2960 Northside Office 6B Hart‟s Corner, Finglas Road, Glasnevin, Dublin 9 Coming Soon