Rents falling - CSO: Has the Irish rental market reached a point of equilibrium?

ionapaul said:
I've just moved back to Dublin and all the places I viewed before taking a room reported things are very, very slow with regard viewings compared to last year and previous years. One guy in Ranelagh told me two years ago his phone was ringing every few minutes for a week when he was looking for a roommate, this time around he'd only had 20 phone calls over the course of 5 days. I've taken a nice single room in Rathmines paying €500pm and sharing with just one other person in a very nice apartment, the same sort of money I was paying the last time I lived in Dublin from 2004-2006. I just don't understand some of the rents being asked on Daft, €700+pm to live out beside or past the M50. Who pays these rents?
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I don't think many people pay the rents being quoted in daft - they are simply a reaction by the landlords to the reports of huge increases in rent.
I know my brother when negotiating an apartment back in Oct was able to obtain a 7.5% drop from the asking price back down to the price that had the apartment had been rented at since 2005.
A friend recently put a room up for letting at the prices being quoted in daft for his development, he got 1 call in 2 weeks, he dropped the price by 20% last weekend - unfortunately, I haven't been in contact since, but I'll update when I hear how that turned out for him.
 
What you say about 'actual' rents paid is true from what I hear and the advertised prices are being asked for but in many cases the arrangement made is lower. Further falls in rent predicted on the latest Daft report, here:- [broken link removed]
 
More great news for renters. It looks like the bottom has completely fallen out of the rental market. Rents are down by 2.9% in August alone

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This was one of the largest single factors in bringing the Anuual Inflation rate down to 4.3% from 4.4% in July. Expect high fives all round from Union and Government officials.
 
this is also in a month where a lot of college students would have been looking for a place to rent. look at post #12 here to see august movements for the last few August's
 
Rents have fallen off a cliff. Down by 6.1% in November!!

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That's an annualised rate of -73.2%
 
Was Tom Parlon was trumpeting 10% year on year rent rises earlier this year? Rental stock on daft is exploding. It looks like all the sheepeoplespecuvestors have jumped off the for sale path and onto the for rent path at the same time.

What should people do now that rents and house prices are collapsing? Live in a caravan for the next year?:p
 
Thomas22 said:
That is an absolutely huge fall in a single month
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Its not really a single month though. Rent data is only collected every quarter, so that reflects the change since august.
The last four months figures have been:
Aug -2.9%
Sept 0%
Oct 0%
Nov -6.5%
 
The recent falls in rents make sense. In fact, the big puzzle was why they held up and even increased a couple of years ago when we all knew that there were lots of empty houses and apartments in Dubliin and around the country. (Reports from census enumerators in 2006 were a strong early indicator). The explanation lies in the fact that, a few years ago, investors weren't interested in the "chicken feed" available from renting when all they had to do was leave the property empty and flip it for an enormous profit after a short period, without the hassle of tenants, etc.

The picture has now changed dramatically. The prospect of selling at anything approaching a reasonable price has disappeared and investors must pick up whatever crumbs they can to pay the interest on their mortgages. This inevitably leads to an increase in the supply of properties available for renting. Simultaneously, I presume that we're now seeing a reduction in demand with the increase in emigration/ return of immigrants. There are still lots of empty properties, so expect rents to keep falling for some time to come.
 
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