Effect of Ghost Estates on urban property prices
Ghost Estates in Ireland: Many of the reported half finished and stalled new housing developments are spread across rural Ireland.Many are located in rural locations with low housing demand and so will not necessarily continue to depress national house prices . At ERA Ireland we have seen the Irish property market fragment over the last two years. In some rural areas with low housing demand, there is now significant housing stock overhang that will take many years to clear and where some housing will actually need to be demolished. In these locations we have already seen closure of estate agency offices which were often satellite offices for agents in larger population centres. In urban areas with stronger housing demand and more favorable demographics we are beginning to see house prices stabilise and demand increase. It is generally felt that demand remains buoyant in these larger cities but transaction levels have been stifled by low levels of mortgage finance availability and anticipation of further property price reductions. As prices stabilise in urban areas and the refinanced banks resume normal levels of mortgage lending transaction levels will continue to increase and lead to a much needed recovery in the Irish property market.
