The Irish Auctioneers & Valuers Institute Annual Members’ Survey for 2009 reported a decline in average residential property values of around 20% for 2009.
In Dublin, property values were down by an average of 20.1% and in the rest of Leinster values declined by an average of 21.5%. In Munster, property values declined 19.2% on average while in Connaught/Donegal values were down by an average of 19.3%.
Commenting on the results of the 2009 annual members’ survey, IAVI President Ms Aine Myler said, “These annual results are in line with our expectations for 2009 and consistent with our belief that the average residential property values would decline 40-50% from peak to trough. The survey results indicate that the market floor is close, if we have not reached it already.
Our members have reported that there are signs that the residential market is beginning to stabilise in certain locations and that most of the adjustment in values has already taken place. A sizeable majority of IAVI members in Dublin experienced a pick-up in activity in the final quarter of 2009, with many recording an increase in residential property enquiries, viewings, offers, sales agreed and sales closed (see table below).
"2009 was an extremely difficult year for the commercial property market but it was a year of two halves. The first saw very little tenant or investor demand while there was an increasing level of supply of all types of property. The second half saw a real pick up in both tenant and investor demand and deals. There are signs that 2010 will be a little better than 2009. It is fair to expect though that this will not be a tide that lifts all boats as both tenants and investors steer towards prime property. NAMA added to uncertainty during 2009, but now that it is established and taking the transfer of loans, we hope the uncertainty will fade as its modus operandi becomes apparent.
“The IAVI has repeatedly called for a National Property Price Register to give consumers access to real-time, transparent and accurate market information. Providing timely, clear details and descriptions of price movements will undoubtedly improve understanding and confidence in the sector. This information is readily available and just requires the political will for its establishment. While we are pleased that it has been proposed in the recent ‘Programme for Government’, there is a real urgency to address this issue as quickly as possible,” she said.
Download the full survey here.
www.pfq.ie
Showing posts with label IAVI. Show all posts
Showing posts with label IAVI. Show all posts
Friday, January 15, 2010
Tuesday, December 15, 2009
IAVI response to Budget
Responding to the measures announced in the Budget, the Irish Auctioneers & Valuers Institute (IAVI) President, Ms Aine Myler, said Budget 2010 will have no major impact for the property sector.
With regard to mortgage interest relief, she said, “For home buyers purchasing before July 2011, interest relief will apply for seven years. We welcome this move to protect new entrants to the market but remain concerned about those who are in struggling to pay existing mortgages.”
“The IAVI has continuously called for a more equitable property-related tax to replace stamp duty. We note the Minsters’ proposal regarding a site valuation tax. It will involve an intensive and lengthy process and is likely to take a number of years to prepare the register of site valuations on which to base the tax.
When the site tax is eventually introduced, it is imperative that there are transitional arrangements made for those who have already paid penal levels of stamp duty.
“The IAVI broadly welcomes the proposal to undertake an efficiency review of the local authority sector. For 32 years, these bodies have been seriously underfunded and the burden on business has gown exponentially.
“The IAVI feels that there was a missed opportunity in the ‘green agenda’ and feel that a greater investment in this area would have yielded greater employment opportunities across the building industry and a significant improvement in energy savings,” she said.
The Irish Auctioneers & Valuers Institute (IAVI) represents around 1,800 fully qualified auctioneers, estate agents, valuers and property professionals throughout Ireland and abroad.
www.pfq.ie
With regard to mortgage interest relief, she said, “For home buyers purchasing before July 2011, interest relief will apply for seven years. We welcome this move to protect new entrants to the market but remain concerned about those who are in struggling to pay existing mortgages.”
“The IAVI has continuously called for a more equitable property-related tax to replace stamp duty. We note the Minsters’ proposal regarding a site valuation tax. It will involve an intensive and lengthy process and is likely to take a number of years to prepare the register of site valuations on which to base the tax.
When the site tax is eventually introduced, it is imperative that there are transitional arrangements made for those who have already paid penal levels of stamp duty.
“The IAVI broadly welcomes the proposal to undertake an efficiency review of the local authority sector. For 32 years, these bodies have been seriously underfunded and the burden on business has gown exponentially.
“The IAVI feels that there was a missed opportunity in the ‘green agenda’ and feel that a greater investment in this area would have yielded greater employment opportunities across the building industry and a significant improvement in energy savings,” she said.
The Irish Auctioneers & Valuers Institute (IAVI) represents around 1,800 fully qualified auctioneers, estate agents, valuers and property professionals throughout Ireland and abroad.
www.pfq.ie
Thursday, October 15, 2009
IAVI report on Residential Property Values Q3
A member survey by the Irish Auctioneers & Valuers Institute (IAVI) suggest that the rate of decline in the value of residential property has moderated to an average of 5.8% nationwide in the third quarter of 2009, an improvement on the rates reported in Q1 and Q2. Since the start of the year, this survey has shown that residential property values have dropped by an average of 24%.
Conducted amongst IAVI members nationwide and based on sales activity, this survey shows that the moderation in the rate of decline was most marked in values of residential property in Dublin, which only declined by an average of 3.5% in the period, which is an improvement from an average drop of 7.7% for the previous quarter.
All other areas are following this trend: in Munster, values dropped by an average of 6.8%, an improvement from an average of 10.7% for the previous quarter. Meanwhile, in Leinster (including Cavan and Monaghan) and Connaught/Donegal, values decreased on average by 8.6% and 4.2%, an improvement from 9.6% and 7.4% in quarter two respectively.
Simon Ensor from the Residential Panel of the IAVI National Council said, “Based on the experience of our members’ property transactions, these results show a significant slowing down of the rate of decline of property values nationwide.
“In quarter three, we saw an average decline of 5.8% in residential property values nationwide This is a significant improvement on both quarter one and quarter two, which showed an overall decline of 9% and 9.2% respectively.
“The slowdown in the rate of decline in property values throughout the country and particularly in the greater Dublin area is seen as possibly one of the early signs of a degree of normality returning to the market.
“In fact, our members have reported a significant increase in activity, particularly in July, with a large number of loan-approved clients actively viewing properties. The survey also showed that 65% of IAVI members reported static or improved sales activity in Q3 for both residential sales and lettings.
“However, it is fair to say that in the experience of IAVI members many buyers are still waiting for the market to reach the bottom. There is a strong possibility that this is very close, particularly at the affordable end of the market.” he said.
These results are based on the experience of professional practitioners conducting property transactions, they are more reliable than advertising-based statistics or other surveys, which are based on data from some months ago. In effect, the IAVI survey represents the view from the coalface of those engaged in selling property in the current market. The IAVI represents over 1,800 property professionals nationwide.
www.pfq.ie
Conducted amongst IAVI members nationwide and based on sales activity, this survey shows that the moderation in the rate of decline was most marked in values of residential property in Dublin, which only declined by an average of 3.5% in the period, which is an improvement from an average drop of 7.7% for the previous quarter.
All other areas are following this trend: in Munster, values dropped by an average of 6.8%, an improvement from an average of 10.7% for the previous quarter. Meanwhile, in Leinster (including Cavan and Monaghan) and Connaught/Donegal, values decreased on average by 8.6% and 4.2%, an improvement from 9.6% and 7.4% in quarter two respectively.
Simon Ensor from the Residential Panel of the IAVI National Council said, “Based on the experience of our members’ property transactions, these results show a significant slowing down of the rate of decline of property values nationwide.
“In quarter three, we saw an average decline of 5.8% in residential property values nationwide This is a significant improvement on both quarter one and quarter two, which showed an overall decline of 9% and 9.2% respectively.
“The slowdown in the rate of decline in property values throughout the country and particularly in the greater Dublin area is seen as possibly one of the early signs of a degree of normality returning to the market.
“In fact, our members have reported a significant increase in activity, particularly in July, with a large number of loan-approved clients actively viewing properties. The survey also showed that 65% of IAVI members reported static or improved sales activity in Q3 for both residential sales and lettings.
“However, it is fair to say that in the experience of IAVI members many buyers are still waiting for the market to reach the bottom. There is a strong possibility that this is very close, particularly at the affordable end of the market.” he said.
These results are based on the experience of professional practitioners conducting property transactions, they are more reliable than advertising-based statistics or other surveys, which are based on data from some months ago. In effect, the IAVI survey represents the view from the coalface of those engaged in selling property in the current market. The IAVI represents over 1,800 property professionals nationwide.
www.pfq.ie
Thursday, July 16, 2009
IAVI Auctioneers report 9.2% fall in house values for Q2 2009
15th July 2009 – A member survey by the Irish Auctioneers & Valuers Institute (IAVI) has confirmed that value of houses has dropped by an average of 9.2% nationwide in the second quarter of the year.
Conducted amongst IAVI members nationwide, this survey shows that the values of houses in Dublin declined by an average of 7.7%.
In Munster, values dropped sharply by an average of 10.7%. Meanwhile, in Leinster and Connaught/Donegal, values decreased on average 9.6% and 7.4% respectively. Second hand apartment prices fared somewhat worse than houses in urban areas during Q2 2009, with average decreases in value of 11.7% (one bed) and 12.5% (two bed) in Dublin and 12.2% nationally for both one and two bedroom apartments.
Since the start of 2009, the survey has shown that, nationally, house prices dropped by 16.9% in the first six months of the year, with the following regional results: Dublin houses are down by an average of 12.2%. In Munster, values are down 22.3% on average. In Leinster and Connaught/Donegal, values decreased on average 19.9% and 14.9% respectively.
According to Simon Ensor from the Residential Panel of the IAVI National Council, “These results are based on the experience of professional practitioners conducting property transactions; they are more reliable than advertising-based statistics or other surveys that are based on data from some months ago. In effect, the IAVI survey represents the view from the coalface of those engaged in selling property in the current market. “Depreciation has continued apace for the second quarter of the year. For the first half of 2009, new urban house prices are down by an average rate of 17.14%, second hand urban homes are down 18.4%, new rural homes are down 22% and second hand rural homes are down 20%.
“While these figures are very disappointing there is a view amongst IAVI member firms that, although prices have not hit the bottom yet, they are extremely close to doing so.“IAVI members, particularly those in urban areas, believe that activity levels have increased with competitive bidding on well-priced houses occurring once more. However, it’s fair to say most activity is at the more affordable end of the market. The lack of liquidity in the banking world appears to be restricting activity in the middle to upper end of the market.
To breathe life back in to this sector, it is crucial that banks increase their lending levels, whether this is enabled by the introduction of NAMA or other means,” he said.
Click on the image for full-size view.
Here is the Q1vs Q" result. Again, click on the image to view.
www.pfq.ie
Conducted amongst IAVI members nationwide, this survey shows that the values of houses in Dublin declined by an average of 7.7%.
In Munster, values dropped sharply by an average of 10.7%. Meanwhile, in Leinster and Connaught/Donegal, values decreased on average 9.6% and 7.4% respectively. Second hand apartment prices fared somewhat worse than houses in urban areas during Q2 2009, with average decreases in value of 11.7% (one bed) and 12.5% (two bed) in Dublin and 12.2% nationally for both one and two bedroom apartments.
Since the start of 2009, the survey has shown that, nationally, house prices dropped by 16.9% in the first six months of the year, with the following regional results: Dublin houses are down by an average of 12.2%. In Munster, values are down 22.3% on average. In Leinster and Connaught/Donegal, values decreased on average 19.9% and 14.9% respectively.
According to Simon Ensor from the Residential Panel of the IAVI National Council, “These results are based on the experience of professional practitioners conducting property transactions; they are more reliable than advertising-based statistics or other surveys that are based on data from some months ago. In effect, the IAVI survey represents the view from the coalface of those engaged in selling property in the current market. “Depreciation has continued apace for the second quarter of the year. For the first half of 2009, new urban house prices are down by an average rate of 17.14%, second hand urban homes are down 18.4%, new rural homes are down 22% and second hand rural homes are down 20%.
“While these figures are very disappointing there is a view amongst IAVI member firms that, although prices have not hit the bottom yet, they are extremely close to doing so.“IAVI members, particularly those in urban areas, believe that activity levels have increased with competitive bidding on well-priced houses occurring once more. However, it’s fair to say most activity is at the more affordable end of the market. The lack of liquidity in the banking world appears to be restricting activity in the middle to upper end of the market.
To breathe life back in to this sector, it is crucial that banks increase their lending levels, whether this is enabled by the introduction of NAMA or other means,” he said.
Click on the image for full-size view.
Here is the Q1vs Q" result. Again, click on the image to view.
www.pfq.ie
Wednesday, June 24, 2009
Paying a deposit on a house
I read a story in the Irish Times about people losing deposits of up to €20,000, when a building company went into examinership.
Laragan Developments, building apartments at Santry and Carrickmines, were paid deposits by prospective purchasers over two years ago. In March, they went into examinership with debts of almost €75m.
Deposits paid to building companies are covered under a Homebond guarantee for a maximum of 24 months. As the project stalled, this time period was used up, so the deposits were no longer covered.
Both developments are partially built with some apartments occupied. It appears that there will be a substantial delay in the completion of both developments. The examiner has said that depositors will be allowed to exit their contracts. He said the 95 individuals or couples who had put deposits on the properties would “suffer an immediate impairment”, but they would also receive a “substantial benefit” as they would be released from their contracts and could acquire alternative properties at a “substantial discount” in the current market.
I am not sure that losing a €20,000 deposit can be seen as a “substantial benefit.” Fine, they will buy a cheaper home now than the apartments were costing two years ago. But to lose that amount of money, which is very difficult for most to save while renting and living, is a serious blow to young first-time buyers. Most will not be in a position to buy anything for the foreseeable future.
As agents, when we sell a home, we ask for a deposit. This usually ranges from €5-10,000 depending on the value of the property sold.
Estate agents in Ireland have to carry a bond to protect depositors in the event of the agency running into difficulty. This bond is ridiculously small, and is not really a protection at all. It is under review at the moment, but like most things under review during this Governments tenure, it has been left undone for the last number of years.
The Irish Auctioneers and Valuers Institute (IAVI), of which we are members, represents c. 2,000 fully qualified auctioneers, estate agents, valuers and property professionals throughout Ireland and abroad. The Institute was founded in 1922.
In 1977 the IAVI established a Voluntary Compensation Fund, into which all members pay a contribution each year. This fund offers extra protection to the public in relation to paying deposits for property (land and/or buildings) in Ireland to IAVI Member Firms.
So if asked for a deposit when buying a property, ensure that the estate agents are members of the IAVI. This will protect your money. You should receive a Deposit Receipt letter, stating that you can ask for the return of your monies, in full, until you have signed an unconditional contract, following which the agent holds the monies as stakeholder on behalf of the seller.
Never pay a deposit directly to the seller of the property. You have no protection, little or no paper trail and potential for difficulty without the supervision of a third-party to the agreement.
Unfortunately, the purchasers above paid directly to the builder and it did not end well for them.
Buyer beware. Know who you are dealing with.
www.pfq.ie
Laragan Developments, building apartments at Santry and Carrickmines, were paid deposits by prospective purchasers over two years ago. In March, they went into examinership with debts of almost €75m.
Deposits paid to building companies are covered under a Homebond guarantee for a maximum of 24 months. As the project stalled, this time period was used up, so the deposits were no longer covered.
Both developments are partially built with some apartments occupied. It appears that there will be a substantial delay in the completion of both developments. The examiner has said that depositors will be allowed to exit their contracts. He said the 95 individuals or couples who had put deposits on the properties would “suffer an immediate impairment”, but they would also receive a “substantial benefit” as they would be released from their contracts and could acquire alternative properties at a “substantial discount” in the current market.
I am not sure that losing a €20,000 deposit can be seen as a “substantial benefit.” Fine, they will buy a cheaper home now than the apartments were costing two years ago. But to lose that amount of money, which is very difficult for most to save while renting and living, is a serious blow to young first-time buyers. Most will not be in a position to buy anything for the foreseeable future.
As agents, when we sell a home, we ask for a deposit. This usually ranges from €5-10,000 depending on the value of the property sold.
Estate agents in Ireland have to carry a bond to protect depositors in the event of the agency running into difficulty. This bond is ridiculously small, and is not really a protection at all. It is under review at the moment, but like most things under review during this Governments tenure, it has been left undone for the last number of years.
The Irish Auctioneers and Valuers Institute (IAVI), of which we are members, represents c. 2,000 fully qualified auctioneers, estate agents, valuers and property professionals throughout Ireland and abroad. The Institute was founded in 1922.
In 1977 the IAVI established a Voluntary Compensation Fund, into which all members pay a contribution each year. This fund offers extra protection to the public in relation to paying deposits for property (land and/or buildings) in Ireland to IAVI Member Firms.
So if asked for a deposit when buying a property, ensure that the estate agents are members of the IAVI. This will protect your money. You should receive a Deposit Receipt letter, stating that you can ask for the return of your monies, in full, until you have signed an unconditional contract, following which the agent holds the monies as stakeholder on behalf of the seller.
Never pay a deposit directly to the seller of the property. You have no protection, little or no paper trail and potential for difficulty without the supervision of a third-party to the agreement.
Unfortunately, the purchasers above paid directly to the builder and it did not end well for them.
Buyer beware. Know who you are dealing with.
www.pfq.ie
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