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House values plunge across Ulster
Saturday, 11 October 2008
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A Malone Road mansion bought at the height of the boom for £2.25m sold earlier this year for £1m less, it was revealed yesterday.
The six-bedroom Victorian property went on the market early last year with estate agent Templeton Robinson and was snapped up for more than £2m.
But a slowdown in the Northern Ireland housing market, which has seen prices plummet by up to 30% in the past year, saw £1m slashed off the value of the bay-fronted detached home.
And with even the most coveted address in the province not escaping falling prices, local estate agents have claimed the resale market has all but bottomed out.
But the period property is not the only one to see its price take a downward spiral.
A detached bungalow in the picturesque village of Crawfordsburn has had its asking price reduced by £245,000.
The two-bedroom home on the sought after Ballymullan Road, which has extensive gardens, was originally valued at £695,000, but is now looking for offers around £450,000.
The prestigious Wellington Square development in Belfast has also seen prices slashed.
Previously a four-bedroom townhouse would have set a buyer back by up to £400,00. Now the same property is for sale at £275,000.
Likewise, a three-bedroom luxury home at the city scheme has dropped from £385,000 to £250,000.
Keith Mitchell from estate agent Templeton Robinson said: “This is the first time Northern Ireland has had a boom and bust – but house prices are not just a problem here, it is a global issue.”
Mr Mitchell added the supply and demand situation of the boomtime has reversed, with 12,500 houses for sale in the province now compared to 4,000 just 18-months ago.
He pointed out, however: “The important figure is the difference between the price people sell their home for and that of their next home.”
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i advised helen carson by email and hard copy of pending doom in the housing market over 15 months ago. i specialise in buying and selling property directly for the owners/sellers by introducing people to people. i told hc and her associates that there would be many people wiped out by this farce of wealth seen over the last 3/5 years and i hold belfast telegraph and other media sources responsible for throwing more fuel on the fire to keep it burning. every time there was comment in hc's editorials, it was estate agents, solicitors and bankers/financiers giving their biased opinion. people who were advised by mortgage advisors/property sellers should have a hard look and see if they were misled by what they were told? in my opinion, do not buy until next year. prices will fall further. much further. and about time too.
Posted by david stewart, belfast | 30.10.08, 20:04 GMT
House prices are falling because the values were falsely inflated in the first place.
It would be like a shop doubling the price of an item of clothing and then selling it in a sale for 30% less. In this case they would be in breach of the law, and liable for prosecution.
Why does the housing market not see this?
Prices have still got a long, long way to fall to reach reality. Property values should be based on a capping system and Estate Agents fully regularised, and all bids verified by Lawyers so as to prevent fictitious bidding and falsifying of prices.
Heaven!
Posted by Ms Erwin | 14.10.08, 16:04 GMT
philip, much of this advice has been available on line for a while if you know where to look. Try googling house price crash/global house price crash and look at the forums there. Unfortunately most people don't look past mainstream media which is controlled to a large degree by organisations which had a vested interest in rising house prices.
Posted by Dave | 14.10.08, 12:12 GMT
I note there are plenty of experts around now with loads of advice, yet we as homeowners are still confused, bewildered and nervous.
Where were all the experts more than 2 years ago when the average NI property started rising above 3.5 times the average NI income x 2 (couple).
Where there not warnings signs then, this must never happen again, not only in my lifetime but my children's.
Posted by philip | 13.10.08, 15:30 GMT
An article which attempts to be realistic but fails by implying prices have "bottomed out" by including the views of completely biased parties. Banks have changed their lending position dramatically and they will never be allowed to lend as they did before. Even without the prospect of global recession this one thing will force prices much much lower. Prices will only stabilise when the average house price reflects 3.5 times the average N.I. salary or 3 times joint because this is the policy that banks will eventually return to. The average N.I. salary is 23k and the average house price is just below 200K. So the average price should in theory drop to a little over 80K. I suspect the fall will not be this much but I would not be surprised to see another 50% of prices.
Posted by Seamus | 13.10.08, 09:40 GMT
ken, a house is not a bargain just because its price has been reduced (think sofas!). You can only judge value by 2 things: price compared to potential rental income, and price as a multiple of the average wage. By both measures the average price for a 2 bed flat, for example, should be approximately £60,000. Or a 3 bed terrace should be around £90,000. BUT- remember the market will under-correct on the way down just like it over-corrected on the way up. The bargains will arrive in 12 to 24 months. Buying now would be financial suicide.
Posted by Dave | 13.10.08, 06:43 GMT
Ken, you are spot on. There are loads of properties reduced in price, can't understand why people don't jump at the chance to buy today. Live for today, don't worry that the market is in freefall! Who cares if todays' "bargain" is tomorrows' vastly overpriced property. I would like to think that you were being sarcastic, but there really are still some people who believe that it is a goood time to buy (I'm not joking !)
Posted by mrcrabbs | 12.10.08, 20:05 GMT
PMSL @ Jack, like the belfast telegraph made stupid people buy property. Grow up, your sitting in front of your pc too long.
Posted by Fubar | 12.10.08, 10:53 GMT
Don't buy? Now IS the time to buy there are so many bargains to be had.
Posted by ken | 12.10.08, 09:32 GMT
Is this the same journalist who, on 28/6/2007 was telling readers abount the 'lucky few' who got in on time to buy a 1 bed apartment in The Bakery for £250,000 or a 2 bed for between £300k - £360k??
I feel so unlucky to have missed out on such an a good value purchase...
Posted by Overcooked Buns | 12.10.08, 02:23 GMT
Whoever said that the top end of the Northern Irish market would not see a fall like this has been proven wrong. When we realise that even the sanctity of the Malone road house prices can be broken, what hope is there for backwater developments with little facilities and no transport links. Most estimates have put an end to the drops in 2010, a long way to go!
Also, I wonder if the EA's in Templeton Robinson talk to one another, they seem to be putting out very mixed meassages.
Land registry???
Posted by camthescot | 11.10.08, 21:06 GMT
the false housing economy has finally bust due to greedy bankers,estate agents and landlords, bye to let morgages should be scrapped allowing house prices to fall furthur enabling the young and working people the houses.
Posted by nigel | 11.10.08, 19:27 GMT
Goodness - realism from HC
Posted by maggie | 11.10.08, 17:15 GMT
I think if Mr Mitchell checks the Propertynews website there are over 27 thousand houses for sale in the province. Perhaps he was referring to the number he had for sale at present.
Posted by charlie | 11.10.08, 17:02 GMT
Good news, cheaper houses. No green shoots on the horizon:
Good to have you back Helen, who would've thought that prices could drop as much as they have?
Posted by Donall Garvin | 11.10.08, 14:40 GMT
Perhaps the Belfast Telegraph would like to take this opportunity to apologise to those people paniced into buying at prices they couldn't afford, at prices that were never sustainable, at the height of the boom. Thanks in no small part them, these people are now in thousands of pounds in negative equity. But I welcome her admittance, for the first time, in this article that we are in middle of a massive crash now. Do not touch property with a barge pole.
Posted by Jack | 11.10.08, 13:24 GMT