Print
E-mail
Dublin is suffering from an "overhang" of about 16,000 apartments as demand in the housing market remains anaemic and prices continue to slide, AIB has revealed.
The country's second largest bank revealed during a conference call with analysts that it estimates the oversupply of apartments in Dublin to be "about 16,000''. The observation was made by the bank's chief executive Eugene Sheehy.
Sheehy said the best way to help the property market and the banking sector was for more people to get mortgages and in that way development debt can be converted to mortgage debt.
"We have a reasonable view of the kind of stock overhang that there is, probably be about 16,000 apartments in Dublin. We don't know how long that will take to work off, but certainly the supply side is going to be very tight,'' he said. "There's nothing coming on to the market for the next couple of years, I'd say,'' Sheehy added.
del.icio.us
digg
Facebook
Google
There may well be no working off... The Irish property market may evolve into a buy-to-refurbish market. The rental sector will provide an ample supply of run-down cash-strapped properties which will be the new targets for purchasers.
The property market is carrying around 200,000 homes which are either not sold or not rented. The mortgages on these are all in jeopardy.Once interest rates stretch and rise of the floor, a raft of uneconomic rental properties will make their way to the market, either by the owner or by the bank.
With new properties being sold off at bargain prices, probably more so next year, the resale value of secondhand homes will rediscover previous lows.
Bye Bye Tiger, Hello Pussycat....