IAVI hopes survey shows that recovery is nigh for 2010

The Irish Auctioneers and Valuers Institute (IAVI) has expressed optimism that the decline in residential property values of around 20% for 2009, found by its Annual Members Survey for 2009, indicate that recovery is nigh. In the region covering Cavan (Leinster with the exception of Dublin plus Cavan and Monaghan), rural homes fell in value by 20.7-27%, while urban homes fell by 17.4-24.6%. The highest drops in values were with period houses on good grounds, the survey found. Rents in the region fell by 15.3%. "These annual results are in line with our expectations for 2009 and consistent with our belief that the average residential property values would decline 40-50% from peak to trough. The survey results indicate that the market floor is close, if we haven't reached it already," said IAVI president, Aine Myler. "Our members reported that there are signs that the residential market is beginning to stabilise in certain locations and that most of the adjustment in values has already taken place." Ms Myler added that 2009 was a difficult year for the commercial property market but it was one of two halves: "The first saw little tenant or investor demand while there was an increasing level of supply of all types of property. The second half saw a pick-up in tenant and investor demand and deals. There are signs that 2010 will be a little better than 2009. It's fair to expect that this will not be a tide that lifts all boats as tenants and investors steer towards prime property. NAMA added to uncertainty during 2009, but now that it is established and taking the transfer of loans, we hope the uncertainty will fade." She added that the IAVI has repeatedly called for a National Property Price Register to give consumers access to real-time, transparent and accurate market information. "Providing timely, clear details and descriptions of price movements will undoubtedly improve understanding and confidence in the sector. This information is readily available and just requires the political will for its establishment. While we are pleased that it has been proposed in the recent Programme For Government, there is a real urgency to address this issue as quickly as possible," she said. Conducted amongst IAVI members/firms around Ireland, the IAVI say this survey is an accurate and up-to-date representation of the volume and value of property transactions that took place around the country over the last 12 months.