Andy Brainin, director at South Hill Capital, gives his thoughts on the outcomes of the independent research recently conducted by the firm.
There is a stark contrast between the number of people moving to Dublin and the availability of homes to house them. That, at least, is a major concern of those already working and living in the city. We recently undertook a survey of Dubliners and asked them for their opinions on a number of issues relating to housing in Ireland’s capital. The results should make harrowing reading for those setting the Irish Government’s housing agenda.
Our survey produced some very interesting results, showing optimism in some areas, but primarily highlighting major concerns around affordability, availability and suitability of housing stock.
Living costs are an important talking point for residents; an astounding 91% of our respondents feared that residential rents were likely to rise with growing demand. The main problem here is that residents have received little reassurance from government and no clear plan of action has been laid out to show how the threat of overpopulation will be managed. This perceived inaction is negatively impacting sentiment in the capital.
Fears around the price and availability of living space are made worse by the current state of residential housing. A more optimistic approach may be taken if the current housing market was deemed fit for purpose but 84% of respondents state that Dublin already needs more residential property, with a further 65% localising the issue to a shortage in one and two bedroom apartments for city workers.
We went on to explore perceptions of alternative housing models which could provide solutions to the existing problem of demand outstripping supply. The high-end co-living model seems to be the preferred route for many people. Over 60% of our respondents said that they would like to see high end co-living brought to Dublin as an alternative accommodation option.
There are huge question marks hanging over the current government housing plans and whether or not they are going to support a sustainable future for Dublin’s housing market or push it towards another bubble. Clearly Dubliners themselves don’t feel that things are going in the right direction for them.
