Limerick Uni: Propery Prices and Rents Falling

This mornings Indo:

OVERSUPPLY of accommodation for students at the fastest-growing university is forcing investors to drop rent by almost 30pc, it has emerged.

An ever-improving supply of University of Limerick's on-campus accommodation, means cost of renting rooms in houses in nearby estates decreasing from an average of €70 to €50 per week.

There are also reports that house prices, too, are dropping, with a number of properties selling recently for what they would have made four years ago.

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If this report is correct then negative equity looks like a real possibility in these estates.
Anyone in Limerick with details or anecdotals ?

http://www.unison.ie/irish_independent/stories.php3?ca=9&si=1470686&issue_id=13012

Just to give my own bit of anecdotal evidence, my sister started college this year and is staying in student accommodation near her college and is paying only €65 per week for a room in a brand new build apartment with every feature you could want, which struck me as good value for money and certainly would seem to bear out your hypothesis.

This is true, there has been a massive amount of tax driven, student accomodation built in the last 2 years around the campus in UL and even further afield. Which means that houses in the estates are failing to attract the students that they once would have.

Even landlords in these new Student accomodation buildings are struggling to fill them.

Most of these Student Accomodation Units had to be sold with a rental guarantee for 3 years from the developers, so most new landlords won't feel the pinch for a few years - whilst getting the benefit of a tax shelter- landlords who didn't buy Section 50 properties or who have properties on the estates are really struggling to fill vacancies and pay mortgages.

Also residental buyers are reluctant to move to Castletroy because of the large student population and the ensuing rowdiness. So property owners are losing out on two fronts, rental income and capital appreciation. Not a good situation for someone who bought in the last 2-3 years

Peadar

Just when I thought the the law of supply and demand had been repealed in Ireland. Repeat after me Yield is real, price is a matter of opinion.

I would imagine something similar is happening in Waterford, there is a huge section 50 development approx one mile from WIT just opened and I have seen as I drive in to the city that rooms are available in similar type developments for €65 pw. I believe that there won't be an increase in rents (in real terms anyway) for the forseeable future -should be good news for those hard pressed publicans as our students will have extra money now....

This seems to be true my brother was renting a brand new s50 apartment for 70 euro and he says that rents are falling as low as 50euros a week in houses where I was considering,previous student estate eg:Elm park.
I know that I was considering buying there 4 years ago and prices are not that different now.I would not invest there and I would usually be considered a very optimistic investor.
There will be a further drive in student housing in the college as the president of UL wants all students on campus as is the case in America.Recently an EBS
employee told me that she reckons that the city is quite saturated but that better bets are slighty rural towns as many people are now happy to commute.

I recently viewed City Campus, a new development of section 50 apartments in Limerick city-in Lord Edward St. Lot of units going to end up there. What are the rents like in these apts. and any views on the apts. themselves and the area?
pad

Not sure about this exact development but average s50 prices by UL are around 70euro per person and the tenants usually pays all esb etc in advance ane is refunded at the end of the year if there is a surplus

With regard to Cork, some of the new student accommodation in the Wilton and Bishopstown areas appear to me to be nearly half empty.