The cost of rent on residential properties in the greater Dublin area is down.
The rents on properties in the greater Dublin area have fallen by seven per cent according to a survey by the Institute of Professional Auctioneers and Valuers (IPAV). The survey also shows the average rate of house price increases across the country has slowed to eight per cent per year.
Sean Mason of Mason Estates, says a compact two bedroom townhouse is available at €1,150 per month which is less than a similar property would have cost last year. A glut of properties on the rental market means that it is a tenant's market.
The landlords are quite happy to reduce their rents in order to keep a good tenant.
According to the IPAV survey, the average rent for a two bedroom apartment or townhouse in the greater Dublin area is €1,121, a seven per cent drop on last year. Nationally, a similar property would cost €714 per month, down two per cent.
Research also indicates an easing in the rate of house price growth. The average cost of purchasing a new two bedroom apartment or townhouse in the greater Dublin area is €289,000, up five per cent on last year. Nationally, that figure is €202,000, up seven per cent.
It's estimated that housing output this year could reach 80,000 units while the demand based on population growth averages at only 45,000 units a year.
The increase in supply should further help to modify house price growth and rents.
An RTÉ News report broadcast on 24 August 2004. The reporter is Robert Shortt.
