Cost of rent stops rising as supply doubles

spalpeen

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Cost of rent stops rising as supply doubles

By Edel Kennedy
Wednesday February 13 2008


" THE number of rental properties available across the country has almost doubled in just one year.

It highlights the increasing pressure on the property market and signals how some are struggling to service their mortgage debts.

The survey, by property website Daft.ie, shows that it has directly resulted in a stagnation of rental prices for the first time in four years. The survey of rents in the last quarter of 2007 shows that the average rent nationwide remains unchanged at €1,388...."


http://www.independent.ie/business/iris ... 88359.html

So now what is left... anyone?? Ard T, FL ???
 


Leftfemme22

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spalpeen said:
Cost of rent stops rising as supply doubles

By Edel Kennedy
Wednesday February 13 2008


" THE number of rental properties available across the country has almost doubled in just one year.

It highlights the increasing pressure on the property market and signals how some are struggling to service their mortgage debts.

The survey, by property website Daft.ie, shows that it has directly resulted in a stagnation of rental prices for the first time in four years. The survey of rents in the last quarter of 2007 shows that the average rent nationwide remains unchanged at €1,388...."


http://www.independent.ie/business/iris ... 88359.html

So now what is left... anyone?? Ard T, FL ???
Like everything else economy related, journalists are some what behind the times. Posters have been saying for months that rents have stagnated and in most cases even dropped.

It does take time for anecdotally accepted fact to migrate to fourth estate print but the delay on this particular issue does stand out.

The Crash just got crashier.
 

Aindriu

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About feckin time too!
 

Fish

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Leftfemme22 said:
spalpeen said:
Cost of rent stops rising as supply doubles

By Edel Kennedy
Wednesday February 13 2008


" THE number of rental properties available across the country has almost doubled in just one year.

It highlights the increasing pressure on the property market and signals how some are struggling to service their mortgage debts.

The survey, by property website Daft.ie, shows that it has directly resulted in a stagnation of rental prices for the first time in four years. The survey of rents in the last quarter of 2007 shows that the average rent nationwide remains unchanged at €1,388...."


http://www.independent.ie/business/iris ... 88359.html

So now what is left... anyone?? Ard T, FL ???
Like everything else economy related, journalists are some what behind the times. Posters have been saying for months that rents have stagnated and in most cases even dropped.

It does take time for anecdotally accepted fact to migrate to fourth estate print but the delay on this particular issue does stand out.

The Crash just got crashier.
Lets see what happens to rents after the spring selling season fails to materialise in addition to the new inventory coming to market in the next few months plus the already large overhang of empties already in existence.

Yup this is for sure one hell of a soft landing/healthy correction but sure lads our fundamentals are sound what with all those new high technology jobs being created by Aldi :roll:
 

digoutday

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Fish said:
Lets see what happens to rents after the spring selling season fails to materialise in addition to the new inventory coming to market in the next few months plus the already large overhang of empties already in existence.

Yup this is for sure one hell of a soft landing/healthy correction but sure lads our fundamentals are sound what with all those new high technology jobs being created by Aldi :roll:

bang on time for the Lisbon vote :)
 

andrew

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Messages
9
ThePropertyPin identified the issue of falling rents a while ago and started to track them. Quite a lot of propertys for rent arent being let out, and the asking rents are dropping. Check out their Rental Price Drops forum.

One report someone did on daft a few days ago showed that out of 2326 properties monitored over 1 week, 235 dropped their asking rent (26 increased).

----------------------------------------
Sun Feb 10, 2008
235 drops
26 rises

From 2326 listings.
-----------------------------------------
Sun Feb 03, 2008
193 drops
24 rises

From 2322 listings
------------------------------------
Sun Jan 27, 2008
135 drops
11 rises

From 2323 listings.
------------------------------------------
Mon Jan 21, 2008
85 drops
16 rises

From 1773 listings
------------------------------------------
Wed Jan 16, 2008
75 drops
15 rises

from 1795 listings
----------------------------------------------
Tue Jan 08, 2008
57 drops
18 rises

From about 1720 listings
-----------------------------------------------
Sat Jan 05, 2008
42 drops
11 rises

From 1722 listings
----------------------------------------------
Wed Jan 02, 2008
24 drops
9 rises

From 1695 listings
-----------------------------------------
Tue Dec 18, 2007

73 drops
16 rises
-------------------------------------------
Wed Dec 12, 2007
72 drops
11 rises

from 1799 listings
-------------------------------------------
Mon Dec 10, 2007
39 drops
5 rises

from 1833 listings
-------------------------------------------
Fri Dec 07, 2007
63 drops
15 rises

from 1823 listings
---------------------------------------------
Wed Dec 05, 2007
46 drops
10 rises

From 1770 listings
 

Anorakphobia

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Glad to see reality finally caught up on the good old happy clappy Daft.ie survey.
Freedomlover, not much left to grab on to now as the great ship Celtic Tiger is listing badly.

Will Bert do Bernard Hill in Titanic and go to the bottom with it or is he eyeing up one of the lifeboats?
"ah jayus Brian, would you hold the wheel here for a while, I gotta take a leak..."
 

freedomlover

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Messages
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The title of this thread is extremely revealing. It says: 'cost of rent stops rising as supply doubles'. The phrase 'stops rising' implies two things: (a) rents have been rising and (b) they have now stabilised, but are not falling. But, a number of posters have been claiming for the past year that rents were falling, indeed collapsing. So, if this was true, why would they use the rather undramatic phrase 'stops rising' in the thread title? If they really believe rents have been falling, why not title the thread 'cost of rent falls as supply doubles'? And supply some figures to back it up. Its because there are no figures to back it up that the thread title 'cost of rent stops rising as supply doubles' far more accurately summarises the situation, namely that rents have been rising sharply for the past 2 or 3 years, but in the last quarter have stabilised.
 

kerrynorth

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freedomlover said:
The title of this thread is extremely revealing. It says: 'cost of rent stops rising as supply doubles'. The phrase 'stops rising' implies two things: (a) rents have been rising and (b) they have now stabilised, but are not falling. But, a number of posters have been claiming for the past year that rents were falling, indeed collapsing. So, if this was true, why would they use the rather undramatic phrase 'stops rising' in the thread title? If they really believe rents have been falling, why not title the thread 'cost of rent falls as supply doubles'? And supply some figures to back it up. Its because there are no figures to back it up that the thread title 'cost of rent stops rising as supply doubles' far more accurately summarises the situation, namely that rents have been rising sharply for the past 2 or 3 years, but in the last quarter have stabilised.
There is always time lags with data collection FL. The pin has indeed been tracking rental falls and it takes time for such a body of anecdotal evidence to feed into official (CSO) and unofficial (Daft) data.
 

meriwether

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freedomlover said:
The title of this thread is extremely revealing. It says: 'cost of rent stops rising as supply doubles'. The phrase 'stops rising' implies two things: (a) rents have been rising and (b) they have now stabilised, but are not falling. But, a number of posters have been claiming for the past year that rents were falling, indeed collapsing. So, if this was true, why would they use the rather undramatic phrase 'stops rising' in the thread title? If they really believe rents have been falling, why not title the thread 'cost of rent falls as supply doubles'? And supply some figures to back it up. Its because there are no figures to back it up that the thread title 'cost of rent stops rising as supply doubles' far more accurately summarises the situation, namely that rents have been rising sharply for the past 2 or 3 years, but in the last quarter have stabilised.



Who said the rents are falling?

They are rising! We will gut the infidels who lower their rental price in the gates of Ranelagh!

The stock market has never been higher!

It is a great time to invest!

Banks are cheap!

this subprime is a yankee imperalist invention to destroy our god, the god of mammon!

Mammon will strike down those who say Anglo's balance sheet is exposed!
 

Dreaded_Estate

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freedomlover said:
The title of this thread is extremely revealing. It says: 'cost of rent stops rising as supply doubles'. The phrase 'stops rising' implies two things: (a) rents have been rising and (b) they have now stabilised, but are not falling. But, a number of posters have been claiming for the past year that rents were falling, indeed collapsing. So, if this was true, why would they use the rather undramatic phrase 'stops rising' in the thread title? If they really believe rents have been falling, why not title the thread 'cost of rent falls as supply doubles'? And supply some figures to back it up. Its because there are no figures to back it up that the thread title 'cost of rent stops rising as supply doubles' far more accurately summarises the situation, namely that rents have been rising sharply for the past 2 or 3 years, but in the last quarter have stabilised.
Rents have fallen!
Rents rose in the first half of 2007 but have since fallen back by 4% since the peak and only rose by 2% for the whole of 2007! Not even enough to keep up with inflation.

In the past 2 years rents have increased by an annual rate of 2.64% according to Daft

With a 50% increase in the number of properties to rent this will but further pressure on rents.

My prediction is that rents will be 10% below their peak by mid 2008.
 

rockofcashel

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freedomlover said:
The title of this thread is extremely revealing. It says: 'cost of rent stops rising as supply doubles'. The phrase 'stops rising' implies two things: (a) rents have been rising and (b) they have now stabilised, but are not falling. But, a number of posters have been claiming for the past year that rents were falling, indeed collapsing. So, if this was true, why would they use the rather undramatic phrase 'stops rising' in the thread title? If they really believe rents have been falling, why not title the thread 'cost of rent falls as supply doubles'? And supply some figures to back it up. Its because there are no figures to back it up that the thread title 'cost of rent stops rising as supply doubles' far more accurately summarises the situation, namely that rents have been rising sharply for the past 2 or 3 years, but in the last quarter have stabilised.
See.. still rising

 

ballot stuffer

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I negociated a sizeable reduction in rent around the time last year everyone said rents were rising. It wasn't as if it was in the middle of nowhere, it was a well located property in south dublin.
 

HanleyS

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meriwether said:
floatingvote said:
meriwether said:
The boys and I were wondering about this. We think it's time to trade up (rent wise).
Any developers out there with a vacant apartment in the city, drop me an email to notapennyover550aweek@hotmail.com
Hmm, what sort tof rent would you be willing to pay ;)
Ive changed email address.
The new one says 'month' rather than 'week'.
You wouldn't have needed to if you shared the email address between four of you. ;)
 

feargach

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freedomlover said:
The title of this thread is extremely revealing. It says: 'cost of rent stops rising as supply doubles'. The phrase 'stops rising' implies two things: (a) rents have been rising and (b) they have now stabilised, but are not falling. But, a number of posters have been claiming for the past year that rents were falling, indeed collapsing. So, if this was true, why would they use the rather undramatic phrase 'stops rising' in the thread title? If they really believe rents have been falling, why not title the thread 'cost of rent falls as supply doubles'? And supply some figures to back it up. Its because there are no figures to back it up that the thread title 'cost of rent stops rising as supply doubles' far more accurately summarises the situation, namely that rents have been rising sharply for the past 2 or 3 years, but in the last quarter have stabilised.
Yes, rents normally rise for a bit when house prices begin to fall. It's a perfectly normal effect of a fall in house prices.

Think about it for a second: why do prices of anything fall in the first place? Because effective demand (people making real offers of money for the good in question) falls.

In an era where house buying is popular, this tends to depress rentals. Why? The FTBs only ever rent while they're saving up for a deposit, and only a certain portion of them actually rent at all. Many simply kip with parents to save dough.

But when the market turns and couples start tending to not be actively seeking to own, this naturally causes a boost in numbers people seeking to rent. Why live with the parents when there no immediate goal of getting your "own" place? Do you really own anything which the bank can whisk off you if your luck changes?

People exiting the housing market, at least until there's a 20% fall = People wanting a place to rent while said fall happens at its own leisurely pace = Said people moving out of Mammy & Daddy's spare room because the lack of privacy's driving them mad and it's less urgent now to save a huge deposit = Rise in demand from general population for already-existing pads for rent. = Rising prices for said already-existing pads for rent.

That's how it played out in the London market in the early 90's crash.

So, really, there's nothing amazing about a rise in rents in the immediate aftermath of the beginning of a long crash.

But: the Dublin + deckland market has an extra wrinkle that was largely not present in the 90s London crash.

There is an immense percentage of totally empty, unused housing units dotted all over the city. And that is the likely explanation for why you're seeing rent drops. Desperate owners are realizing that the bust has bedded down for the long term. Holding out for the perfect buyer is a fool's game. So, suddenly these properties are available for rent.
 

Aindriu

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ballot stuffer said:
I negociated a sizeable reduction in rent around the time last year everyone said rents were rising. It wasn't as if it was in the middle of nowhere, it was a well located property in south dublin.
Will you negotiate mine when it is due?

Landlords have to realise that not all rental properties go to 2 or 3 professional singlies - I have a family and have a limit to what I can pay as do lots of others. If they insist on being greedy they could well end up with empty properties as renters move further out into the country & commute.

Landlords need to start heeding the old saying 'you can't get blood out of a stone'.
 


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