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Sharp improvements in house building activity noted in the first half of 2021

Work on 12,700 housing units commenced in the second quarter, the highest number since 2007.

HOUSE BUILDING ACTIVITY recovered strongly from the impact of the pandemic after sites were reopened in May, according to the Banking and Payments Federation of Ireland (BPFI).

The banking lobby group’s latest Housing Market Monitor also highlights the increasing level of construction activity in areas outside Dublin relative to the capital.

The report comes as the Government readies its ‘Housing for All’ strategy for launch following a Cabinet meeting later today. 

Minister for Housing Darragh O’Brien will unveil the new suite of policies against a national backdrop of rising prices and low levels of supply, exacerbated by pandemic-related public health restrictions over the past year.

Residential property prices increased by 6.4% nationally in the year to June 2021.

But according to the BPFI report, 5,021 housing units were completed in the second quarter of 2021, a sharp improvement upon last year.

It means that 8,955 houses were completed in the first half of the year, a 10% increase on the same period last year and just 1% fewer than the same period in pre-pandemic 2019.

Work on a total of 12,700 housing units commenced in the three months to the end of June, the most in a single quarter since 2007.

“On an annualised basis, almost 27,300 units were commenced in the twelve months ending June 2021, the most in any twelve-month period since the twelve months ending October 2008,” according to the report.

Construction activity is also noticeably moving away from the capital and into its environs, the BPFI said.

Judging by sales of new properties, 36% of market transactions in the Dublin Commuter belt during the first half of 2021 were for new properties, compared with around 25% in 2011.

Just 23% of transactions in Dublin and 19% in Cork were for new properties, according to the report.

Commenting on the findings, BPFI chief executive Brian Hayes said Dublin’s share of total national completions has fallen in recent years from a record 39% in 2017 to 28% in the first half of 2021.

“Breaking down the types of completions, it’s interesting to note, however, that Dublin continues to have the most apartment completions accounting for about 68% of all completions at the national level,” the former Fine Gael TD said.

“We also see that Dublin’s share of total commencements stood about 35% as of the first half of 2021 declining from around 44% in 2015.”

Overall, Hayes said, ”Notwithstanding the negative effects of the pandemic, we see that activity levels are increasing significantly.

“The recovery of the residential construction sector continued with the removal of pandemic-related restrictions on activity in the sector from May 2021.

“If the sector continues to build at a rate similar to the second half of 2020, it is likely that total completions in 2021 can reach 22,000 units.” 

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    Mute Aidan Leonard
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    Sep 2nd 2021, 8:07 AM

    Doesn’t make any difference if we can’t buy them when finished. I live right beside Charlestown Shopping centre, there were 250 apartments built there in the last year or two. Not one of them will hit the market as all were bought up by a fund to be rented out….. no doubt at extortionate rates too…….

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    Mute Tom Kennedy
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    Sep 2nd 2021, 7:16 AM

    And I still wonder why nothing has been done to tackle the unoccupied houses blotted across the country. Within a 10 mile radius of where I live, I’ve counted 22 habitable or easily habitable houses in which no-one is living… Crazy. Perhaps if the government gave assistance in reducing the capital gains on houses it might help.

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    Mute john smith iv
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    Sep 2nd 2021, 11:02 AM

    @Tom Kennedy: those houses aren’t where people work. Probably mostly second hand anyway. Removing capital gains tax is pointless.

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    Mute Tom Kennedy
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    Sep 2nd 2021, 12:01 PM

    @john smith iv: we don’t all work in Dublin or urban areas. People crying out for housing in my area. Second hand??? Majority of people I know couldn’t care less. Furthermore, the capital gains issue is a major deal breaker. People can’t afford the €30K+ to sign over a house so they just sit there unoccupied…

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    Mute Bat Collins
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    Sep 2nd 2021, 9:38 AM

    They’ve had more than 10 years in government and they’re only now talking about building? And why is the banking lobby involved? More backroom deals I think.

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    Mute Gerard Heery
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    Sep 2nd 2021, 8:55 AM

    The price of materials to build a house now going through the roof ,and regulations don’t expectvmuch from this statement the time to build was during the recession and inswing leave anyone live over a shop that’s old ,to much a fire trap

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    Mute David Stapleton
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    Sep 2nd 2021, 8:21 AM

    From the headline I thought that building methods had improved. I thought, what! why was it not better before.

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