2021 was a busy year in the property market characterised by a chronic shortage in supply of homes for sale. This resulted in having multiple bidders on most properties and asking prices being generally exceeded by up to 10% in many cases. Over 90% of the
properties we sold achieved at or above their asking prices.
2022 has begun very positively, with restrictions being lifted. The coming 12 months are going to be fast paced for many businesses and property will be no exception. We expect that properties in walk-in condition will continue to achieve a premium price. Spacious family homes are in great demand. Prices for derelict properties or those needing substantial investment have not inflated to the same extent as others. The well-documented increased cost of building materials, and the shortage of builders and skilled trades, is clearly having an effect here. However, for properties that can provide a blank canvas in the longer term with time and work, but are habitable in the shorter term, there is stiff competition.
We continue to find it difficult to see supply and demand coming into balance in the short/medium term. Although construction is full steam ahead with a significant pick up in the number of residential units being commenced, the impact of this on the supply chain is not being felt as much as it is needed. Pre-Covid, a report published by the Central Bank suggested that about 34,000 homes would have to be built each year over the next decade just to meet demand. Based on the CSO figures of just over 14,000 completions to end of Quarter 3, 2021, this figure is falling far short.
Once again, 2022 is a year that is going to be like no other, with a set of unique factors working against an even more unique background.