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There has been a drop in the number of cash buyers snapping up properties

A new housing report found that 97% of property professionals believe house prices in Dublin will increase further in the next 12 months.

CASH PURCHASERS ACCOUNTED for about 35% of house transactions in the second quarter of the year - a drop from 50% for the first quarter.

The new housing report, published by the Society of Chartered Surveyors Ireland, indicate that the level of cash transactions is beginning to moderate.

The SCSI – which is the professional representative body for estate agents and construction professionals – said the new finding suggest that mortgage availability has improved.

Who’s buying?

First time buyers accounted for 44% of transactions, while movers accounted for 29%.

About 22% of units were purchased as Buy to Let or investment properties.

The report found that the pace of sales activity levels in the property market (sales enquiries, sales agreed and sales completed) increased in the second quarter of the year.

It suggested that, “this moderate improvement in housing mobility may be due to some properties lifting out of negative equity and the availability of products which allow people to move and retain their tracker mortgages.”

Simon Stokes, Chair of the Residential Property group of the SCSI, said, “There has been an improvement in confidence from investors in the property market, which has been supported by improved yields and finance availability.

This should help improve the quality of rental stock but we still need to see more housing being built to improve supply levels and moderate the pace of rent increases.

Looking forward

The report is based on a survey of property professionals across the country.

It found that 90% of respondents believe average national house prices will be higher in 12 months time, with one in three believing they will rise by 5%.

While 97% believe Dublin house prices will rise over the same period, one in four saying they will be 10% higher.

Stokes warned that the lack of supply – especially in Dublin – remained a key issue.

Ninety per cent of respondents in Dublin believe there is a greater demand for housing than supply and 70% believe that demand will continue to outstrip supply in Dublin in 12 months’ time.

“However the situation in the west and mid west is very different with 60% and 80% respectively believing that supply is greater than demand and that is an issue which also needs to be addressed.”

Read: These luxury apartments were nearly all snapped up by cash buyers>

Read: Bidding opens on the first ever online-only property auction today>

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29 Comments
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    Mute Ted Carroll
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    Aug 26th 2014, 6:46 AM

    Cash buyers were more likely investors looking for large capital increases in the short term who now realise the value is completely gone from the market! The genuine home owners are now left to fight over the overpriced bones which remain!

    183
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    Mute Pete Foley
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    Aug 26th 2014, 6:59 AM

    The only overpriced houses are in Dublin.

    90
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    Mute Hairy lemon
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    Aug 26th 2014, 7:43 AM

    If the banks are lending again then the tight supply in Dublin will continue to push up prices.

    Until they do (start lending) there’s still value in buying now as many are locked out of the market through either no finance or neg. equity.

    The demand for houses (not apartments) in Dublin hasn’t gone away.

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    Mute Helen of Troika
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    Aug 26th 2014, 9:39 AM

    If I would give my kids one bit of advice it would be never to buy. How is someone to know where you are going to be in say 15 years time. If you buy and get a mortgage you don’t have that choice.

    18
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    Mute David Andrews
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    Aug 26th 2014, 10:02 AM

    No. If you are renting for 5 years it’s money down the drain. If you buy you get closer to owning it with each payment. Then if after 5 years you wish to move, you can rent it out to cover the mortgage, or sell. Then come retirement you’ll be a property better off or 5 years worth of rent better off. Your thinking is short sighted.

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    Mute David Andrews
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    Aug 26th 2014, 10:03 AM

    Sorry, my above reply is to Helen.

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    Mute John Cunniffe
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    Aug 26th 2014, 11:35 AM

    Ted, not on the ground. Many of the cash buyers sold in the boom, sat on their money and are now looking to buy again

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    Mute Cpm
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    Aug 26th 2014, 12:17 PM

    “How is someone to know where you are going to be in say 15 years time.”

    If they buy they’ll be 5 (or 10) years from owning a house fully. If they rent they’ll be in the exact same position they were 15 years ago.

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    Mute aurilton
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    Aug 26th 2014, 6:47 AM

    Be careful out there…… Property ‘Boom’ = Property “Doom”

    68
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    Mute Cpm
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    Aug 26th 2014, 12:18 PM

    Deep, man. Very deep.

    6
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    Mute Declan Beach
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    Aug 26th 2014, 7:59 AM

    dont know what the love affair is in this country with property. too many people see it as a get rich quick scheme. we need to concentrate on home grown manufacturing. a countrys economy cant survive on housing booms alone. and houses in this country have been over priced for years. too many people got believed government’s and estate agents bull and there falling for it again.
    if ECB put up intrest rates by even a half a percent there will be a lot of people in dire financial trouble.
    and im not a doom and glumer. I work in construction and would love work to be better but im facing up to reality here and everything is not all rosie in the garden yet. were far from it.

    60
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    Mute Pete Foley
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    Aug 26th 2014, 8:21 AM

    If you pay your house off in 20 to 30 years you won’t be paying mad rent till you die and you know house can’t be sold. My mortgage is half what I would be paying in rent for same house. Plus when I do go to heaven ;) my daughter will have the house.

    50
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    Mute Harry byrne
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    Aug 26th 2014, 8:36 AM

    It would take me 2 lifetimes to save 300k to buy a house. What do these cash buyers do for a living..??!?!!

    52
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    Mute Eric Davies
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    Aug 26th 2014, 11:23 AM

    politicians , bankers, financial services? how many of our politicians own 2 or more homes ? how many are actually registered as landlords?

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    Mute Patitas
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    Aug 26th 2014, 7:32 AM

    Many cash buyers are first time buyers who just didn’t fall in the madness of buying at any cost back in the day.

    Not everyone was stupid enough to pay EUR 300k for a 60m2 2 beds next to the Guinness… I remember those years, something just didn’t feel right.

    49
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    Mute Peter McGlynn
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    Aug 26th 2014, 7:59 AM

    Some jobs they have that they can save 300K in 10 years!

    42
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    Mute Richard McCarthy
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    Aug 26th 2014, 9:11 AM

    Yea you are right,I was fortunate I repaid my mortgage in 2001,and not all of us bought in to the overpriced second property hype that was rampant in the noughtes,now I could buy another property without any need for borrowing but won’t, but it’s a real nice feeling to know all the same.

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    Mute Patitas
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    Aug 26th 2014, 9:28 AM

    Peter, doing quick maths 2 incomes saving 1000 per month each give you 240k in 10 years.

    Not easy as some sacrifice need to be done in terms of lifestyle, etc, but doable.

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    Mute Paul Parsons
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    Aug 26th 2014, 7:24 AM

    I like to keep my cash for money fights and money showers. Thank you very much.

    40
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    Mute FlopFlipU
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    Aug 26th 2014, 7:02 AM

    The property dropped to much in the first place ,it dropped below what it would cost to build ,it,s recovering from a false low

    39
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    Mute 1 Human Being
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    Aug 26th 2014, 7:35 AM

    If a German recession kicks in, it will have a knock on effect for most of Europe. This would effectively mean stagnation of the euro and thus most eurozone countries will effectively follow Germany into recession also.

    31
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    Mute CAPITAINE ADEBAYO
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    Aug 26th 2014, 8:29 AM

    Unfortunately that’s what’s coming down the line. We have been taking the medicine since 2008 but it’s only a matter of time before one of these ‘unforeseen events’ happenes. That’ll knock this ‘recovery’ back another year or 2. Before you know it we are in our 10th year of recession.

    I’m all for a recovery, I’m sick of this merry go round too. I want to believe the indicators and signs I keep being told about. I really don’t see that much of it to be honest. Restaurants are flying to be fair. Anybody I know at that is flat out, good bars are making good bread too. Cars are going better. Still lots of people on their arse though and scraping by in short term contract jobs.

    Generally I’d say confidence is poor out there for too many people to call this a recovery and with property tax and water tax that’s just going to get worse, not better in my opinion. What can you do though? We did EVERYTHING we were told by our masters, they can’t say we didn’t. With the civil obedience in Ireland I wonder how we aren’t world leaders.

    44
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    Mute Richie Curry
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    Aug 26th 2014, 7:16 AM

    Has not really gone outside Dublin yet though I’m
    In Kildare and not much increase on prices, some houses selling alright but at good prices

    24
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    Mute steven23
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    Aug 26th 2014, 10:17 AM

    Not sure ur fully right there… Friend of mine got a house for 230k 2 years ago the neighbours went for 320k last month!!
    They are stating put tho, if they sold where wud they go sure!!

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    Mute David Thomas
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    Aug 26th 2014, 7:40 AM

    I better buy one quickly so!

    19
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    Mute Mark Scott
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    Aug 26th 2014, 11:17 AM

    Oh well if the society for chartered surveyors said so…
    The gougers representing gougers reckon we all need to fork out….and QUICK!

    6
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    Mute Inmo Habitat One
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    Aug 26th 2014, 9:01 AM

    High demand for homes combined with reckless lending causes boom and bust.

    3
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    Mute ColindeB
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    Aug 26th 2014, 11:42 AM

    Figures from this vested interest look rather suspect.

    http://www.thepropertypin.com/viewtopic.php?p=787783#p787783

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    Mute Inmo Habitat One
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    Aug 26th 2014, 8:48 AM

    Greater demand for homes and reckless lending is a recipe for disaster, but do the banks

    2
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