The Irish residential sector was in a correctional mood during the last year of 2009. In the second quarter of the last year, the market faced a definable reprieve on deflation. Greater alignment in terms of price expectation between the vendors and the purchaser has been possible because of the increase in the activity levels due to various reasons. Such as low mortgage rates, falling price along with the increasing vendor acceptance in respect to the market realities. A recent trend has been noticed in the case of the second-hand properties in this market.
The stock of second-hand market is being tightened. From the latest available statistics of Ireland and the figures from the National Accounts revealed that the rate of decline in the economic activities of the nation has been continued during the second and third quarter. The Gross National Product has been fallen by an annual rate of 12%. The level of real Gross Domestic Product has been contracted by 8.5%. This slowdown in economic performance badly affects capital investment expenditure. This is declined by 34.1% in comparison with the previous year.
This decline in the capital investment expenditure leads to the decline or slowdown in the residential contraction output. As per the latest figure was given by the Department of the Environment, total 12,162 residential units had completed construction during the first two quarters of the year 2009; this statistics shows a 48% reduction compared to the last year. The ongoing decline in the house price along with the low historical interest rate has a significant impact on the affordability level in this market. As per the Sherry Fitzgerald Affordability Index, the proportion between the mortgage repayment and the take-home par ratio is declined during the last year (FitzGerald, n.d. ).
A specific construction standard for the building has been referred through the term of “ Passivhaus” .
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