THE ARGUMENT as to just how many empty houses and apartments there are around the country rumbles on, with the latest estimate from a Maynooth professor putting the overall figure at over 300,000. The Construction Industry Federation, which looks after the interest of builders, had suggested that the figure is only around 40,000, while last week Minister for Housing Michael Finnerantold the Cabinet there were between 100,000 and 140,000 houses lying empty.
Professor Rob Kitchin of the National Institute of Regional and Spatial Analysis (Nirsa), based at NUI Maynooth, which advises the Government, based his calculations on Ireland’s national address database – the GeoDirectory along with the 2006 Census and Department of Environment figures based on ESB connection points.
If his calculation is correct, the oversupply of housing will take years to clear, particularly in rural areas, where the real argument is about demolishing some of the homes that are likely to lie idle for many years.
In Dublin, a number of developments that have run into trouble are likely to be offered for sale in the coming weeks now that receivers have been appointed. One of these, Island Quay at East Road in Dublin 3, has about 150 apartments still unsold. Agent Brian Dwyer & Partners got from €320,000 for one-beds and from €375,000 to €520,000 for two-beds when the development first went on sale off-plans two years ago.
Two different receivers are expected to appoint selling agents shortly to handle the sale of apartments at Milners Square in Santry and Carrickmines Green. At the peak, two-beds in Carrickmines made around €500,000 but are unlikely now to fetch more than €300,000.
While there are many more schemes in deep trouble, it is by no means certain that they will all be offered for sale at rock bottom prices. Those in good locations are likely to be rented in the short term, until there is some sign of a recovery.
This will obviously have a further knock-on effect on rents in the suburbs which are already well down with so much product on the market.
