As most subscribers will be aware, Buyers Broker ltd. is a team of brokers who source Irish property (residential and commercial) for buyers, investors and corporate entities. In the past, our services were typically engaged by savvy investors who wanted access to off-market opportunities or by busy executives who did not have the time to stay on top of the property conveyor-belt that epitomised the boom years. Today, first-time buyers make up the majority of our active clients.
We are seeing two distinct types of buyers at the moment. Those first-time buyers (principally in state employment) who have been loan approved for several months at this stage (budgets €140,000 to € 450,000) and who feel that now is the time to buy. The other buying force in the market is the cash buyer in the €1m plus price bracket who have been watching luxury homes take a huge drop (well in excess of 50%) and again, they know that now is the time to buy.
Some buyers may have been waiting for the market to “bottom out” when, in fact, the market is far more unruly than that. This leveling off will not come in a straight line across the board, areas of high demand and low supply will recover first, without ever hitting the magic 50% discount level. Buyers need to understand that much-hyped figure of 50% as the guideline price decrease is not universal. It is a statistical average and it is distorting buyers’ view of the local markets.
Our role is to bring to clients the realities of the day to day market in their desired area. For example, apartments in rural towns will face a hit in real terms of somewhere in the region of 65%+ but starter houses in areas of high demand and low supply (Blackrock, Terenure, Ranelagh – Commuter-ville is a thing of the past!) saw a drop of less than 30% in some cases. Now, just imagine the frustration of buyers who were waiting for the 50% drop that never came. They are now seeing properties sale agree and supply further decrease. Within a short space of time, activity has increased, time that properties sit on the market has decreased and buyers in areas of high demand are left thinking that they have missed the boat – again!
Some general points to note:
- All demand is for houses, we see absolutely no appetite for apartments among Irish buyers or investors.
- We are actively attracting UK investors for the quick fire apartment sales.
- We saw tentative signs of recovery in Galway City, parts of Waterford City, Dublin City Centre and South County Dublin in the third quarter of 2009. This was well confirmed by the first quarter of 2010 and the trend continues.
- There has been a significant increase in cash buyers but unfortunately, cash is no longer king for buyers as they are competing with finance-ready, chain-free buyers.
We can see that there are tremendous opportunities out there for buyers at the moment and they just need access to accurate, independent up-to date market information.
For further information, please see our Capability Statement on our website homepage, which sets out the company details, our full service offering, benefits for buyers and a brief overview of the buying process.