A slump in the property market has a significant effect on the price of homes.
An estate agent with Flynn and Associates Auctioneers says in 1982, there was plenty of finance available and sales were good until the summer. After that point things began to decline and he is now finding it very difficult to sell houses.
I would say I put twice as much work in for the same return as I did last year.
The reduction in value is drawing people away from new houses and he believes first time buyers will find better value in second hand houses.
Builders costs are pushing up their prices, for them to reduce a price they must reduce their profits, they can only go so far.
However the one area flourishing in the building industry is apartment developments. Apartment prices have not decreased in value whereas other sectors have.
The sales figures have been very impressive, we've over 800 units sold last year and it looks as if this will be another record year.
Apartments are becoming more popular for two main reasons, the first because they are secure and sustain fewer break-ins, the other is because
Most blocks are built in very convenient positions.
Many people now prefer to live near to the city rather than out in the suburbs and the location of many apartments can provide this proximity to the city at an affordable price. This is exemplified by The Elms development on Mount Merrion Avenue in Blackrock, County Dublin.
The recession has caused depression across the board in all sectors of the building industry leading one commentator to say,
I don’t see a recovery to anything like the levels that we had in the late 1970s for the foreseeable future.
He does not see any prospect of recovery unless the government changes its present policies.
An RTÉ News report broadcast on 23 May 1983.