Read Director and co-founder Eamon Hetherington’s thoughts on the CSO Residential Price Index below, as part of an article from Property District.
Eamon Hetherington, Director, Property Developers GPD
“These figures suggest a slowdown in house price growth – but the overwhelming feeling in the marketplace is that we will see house prices go up this year. So, any levelling off may well be short-lived, which is concerning because in December of last year, the Economic and Social Research Institute (ESRI) said that “prices are as high as they can possibly go given affordability in the domestic economy”.
We need to address the factors that will drive prices up – supply is an obvious one, but before we can look at supply, we must look at the cost of building. Material costs are going up and will go continue to increase in line with Brexit. Ireland currently imports a large portion of its building products from England – we need to start looking at buying directly from Europe.
Also, land remains too expensive. Property prices will fall only when the cost of land comes down.
In terms of addressing supply issues we should be looking up – not out. We need good sized apartments – and we should be encouraging builders to develop these – not just to fit as many as they can on one site. But this needs to be facilitated and local authorities need to step in to support the feasibility of these developments… allotments in urban areas for residents, proper and secure bike storage facilities, greater infrastructure etc.
Ultimately Ireland’s economic forecast is positive. Growth is expected, but it will put a greater strain on our housing needs. For example, just last week KPMG announced the are looking for 800 workers – 400 of these will be graduates – these people will have differing housing needs – we must be able to accommodate our workers and their families.”