RESIDENTIAL HOUSING MARKET UNDER CONTINUING PRESSURE
National housing turnover rate at 2.2%, increased from 1.4% last year
• There were 2,008,568 residential dwellings across the country. 13,062 dwellings were added in the 12 months to July 2015.
• Combining data on residential property transactions from the Property Price Register (PPR) and the GeoDirectory Database, the report estimates that 45,138 transactions occurred in the year to June 2015, contributing to a national turnover rate of 2.2%.
• Dublin had the highest average transaction price (€342,284) in the country from June 2014 to June 2015, followed by Wicklow (€277,394) and Kildare (€235,582)
• A total of 3,786 residential buildings were classified as being under construction in the GeoDirectory Database in Q2 2015.
DATE 25 August 2015 : Despite a low national turnover rate of 2.2%, Irish residential construction levels are still too low to match demand, according to new research published by GeoDirectory today. This point is further reinforced by cross referencing the Property Price Register (PPR), the CSO Census of Population and the GeoDirectory Database.
The GeoDirectory database found that there were 2,008,568 residential dwellings across the country, an increase of 13,062 in the 12 months to the end of July 2015. The GeoDirectory database distinguishes between a ‘dwelling’ which is a single residential unit as opposed to a ‘building’ which can comprise one or more dwellings.
According to the GeoView report, Dublin had the highest residential density per square kilometre by a large margin (571 dwellings per km²). The next highest ranked county, Louth (63), had a substantially lower density, followed by Kildare (47). Leitrim and Mayo (both 12) had the lowest residential densities. Leitrim’s small population and Mayo’s relatively large area are the likely explanations for this.
Waterford, with a relatively small population as of the 2011 Census, had the greatest number of dwellings per 1,000 of the county’s population at 795. In contrast to this, Dublin had one of the lowest ratios at 411 dwellings per 1,000 of the population, more evidence of the ongoing housing shortage in the capital. The lowest ratio was found in Kildare with 378 dwellings per 1,000 of the population, a figure likely to have been influenced by its proximity to Dublin.
Uniquely, this report supplies a breakdown of the types of dwellings in Ireland. Detached dwellings accounted for the largest proportion at 41.7% of the total housing stock. The country’s stock of 181,424 apartments, 9% of the total housing stock, points towards a change in Irish lifestyle, as more people are moving towards the large urban centres. Dublin accounted for the vast majority of this national proportion, as 114,612 apartments (63.2%) were located in the Capital.
By combining data on residential property transactions from the PPR and the GeoDirectory Database, an estimate of the rate of turnover of the housing stock can be ascertained. According to these figures, the national average housing turnover rate from June 2014 to June 2015 was 2.2%, an increase from the 1.4% recorded in the previous 12 months. Dublin, which accounted for 15,169 transactions (2.9% of the total Dublin residential stock), experienced the greatest turnover in housing stock. Monaghan had the lowest turnover rate of 1.2%, followed by Donegal (1.4%) and Tipperary (1.5%).
The report estimates that there were 45,138 transactions in the year to June 2015 according to the PPR. A total of 12.9% (5,826) were represented by new properties while 87.1% (39,312) were second-hand property transactions. The low level of construction, combined with the small number of new properties that came on stream in the last 12 months is likely to be the reason why there is such a high proportion of 2nd hand transactions.
Unsurprisingly, the Capital had the highest average transaction price (€342,284) in the country over the 12 months from June 2014 to June 2015. Given the low levels of construction in the last 12 months, the upward trend in prices is likely to increase. Wicklow had the second highest average price at €277,394. Longford had the lowest average transaction price in Ireland at €75,583. This was followed by Roscommon at €82,517.
3,786 buildings were classified as being under construction in the GeoDirectory Database in Q2 2015. Dublin (13.3% of all buildings under construction in the country), Donegal (12%), Cork (11.1%) and Galway (6.8%) dominated in this area. Building activity remained slow in Roscommon and Leitrim where only 24 buildings were under construction in each county. The high number of transactions involving 2nd hand dwellings (87.1%) also suggests that there is plenty of space for further construction activity in the market.
Commenting on the findings, Dara Keogh, CEO, GeoDirectory said: “Cross referencing the GeoDirectory database with the PPR gives the only clear picture of the residential property stock in Ireland. We’re seeing an increased level of market activity in terms of sales, however the levels of construction are not matching this. This is clearly illustrated when we look at the breakdown of transactions in terms of new and 2nd hand dwellings. 87.1% of all transactions in the last 12 months involved 2nd hand dwellings. The increased demand and low levels of construction tend to put increased pressure on prices, as we’ve seen in the Dublin market. To help ordinary people use the PPR effectively and find out the prices of property in their locality, we’ve updated our free app, GeoFindIT, to include the PPR using augmented reality. Users can check out local property prices by strolling down their street with GeoFindIT open on their phone”
Annette Hughes, Director of DKM Economic Consultants said “This is the third comprehensive report about the residential building stock of its kind to be published in Ireland. By using the data from the PPR, the CSO Census of Population and the GeoDirectory Database we have a unique insight into the residential building stock in Ireland. One key statistic which the report highlighted was that the national average housing turnover rate in the year to June 2015 was 2.2%, improved from last year but still well below what would be deemed to be a more normal housing turnover rate of around 4% to 5%.”
The GeoDirectory database is a comprehensive address database of dwellings in the Republic of Ireland. The data in this report relates to dwellings in the database as of the 31st July 2015.
A copy of the GeoView Residential Buildings Report is attached in PDF format and is available here
Notes to Editor:
Dara Keogh, CEO, GeoDirectory and Annette Hughes, Director of DKM Economic Consultants are available for interview.
The data in this report relates to dwellings in the database as of the 31st July 2015.
GeoDirectory was jointly established by An Post and Ordnance Survey Ireland (OSi) to create and manage Ireland’s only complete database of commercial and residential buildings. The figures are recorded through a combination of the An Post network of 5,600 delivery staff working with OSi.
The GeoDirectory database is used by many different companies and organisations across a diverse range of applications. Its database and services are used by Central Statistics Office to achieve more accurate census results, Gas Networks Ireland has used for GeoDirectory to identify and categorise new potential customers and 11890 Directory Inquiries have used GeoDirectory to provide detailed directions and maps to their customers. Eircode have used GeoDirectory to create, develop and maintain Ireland's postcode system.
In the property sector, GeoDirectory is used by Daft.ie and the Property Registration Authority. In addition, utility companies, banking and insurance providers, and all local authorities use the database.
For further information or to view relevant case studies please visit www.geodirectory.ie
For more information on GeoFindIT Click Here
For further information, please contact:
Tel: +353 1 6690152
Mob: +353 87 9140358
1.2% Housing Turnover Rate in Monaghan
1.4% Housing Turnover Rate in Donegal
1.5% Housing Turnover Rate in Tipperary
1.6% Housing Turnover Rate in Kerry
1.6% Housing Turnover Rate in Kilkenny
1.6% Housing Turnover Rate in Mayo
1.7% Housing Turnover Rate in Offaly
1.7% Housing Turnover Rate in Roscommon
1.9% Housing Turnover Rate in Carlow
1.9% Housing Turnover Rate in Clare
2% Housing Turnover Rate in Laois
2.1% Housing Turnover Rate in Cork
2.1% Housing Turnover Rate in Leitrim
2.1% Housing Turnover Rate in Waterford
2.2% Housing Turnover Rate in Cavan
2.2% Housing Turnover Rate in Galway
2.2% Housing Turnover Rate in Limerick
2.2% Housing Turnover Rate in Sligo
2.2% Housing Turnover Rate in Wexford
2.3% Housing Turnover Rate in Louth
2.3% Housing Turnover Rate in Meath
2.3% Housing Turnover Rate in Wicklow
2.5% Housing Turnover Rate in Kildare
2.5% Housing Turnover Rate in Longford
2.6% Housing Turnover Rate in Westmeath
2.9% Housing Turnover Rate in Dublin