42% of New homes sold in 2023 were part of a block sale DNG research finds
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Loading... - Beatrice Abate
- 30 Aug 2024
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A recent research study by estate agents DNG has revealed that a significant proportion of new homes sold in 2023 were part of block sales. The analysis found that 42% of new homes sold last year, equivalent to 7,306 units, were sold as part of transactions involving multiple units. This trend is particularly pronounced in Dublin, where 61% of new homes sales were part of block sales.
Block sale buyers are typically non-household organisations, such as Approved Housing Bodies, investment funds, and other financial institutions, local authorities, and charities. These organisations are increasingly dominating the market, with 58% of all new homes, representing 9,201 units, being sold to individual private buyers. This means that a significant proportion of new homes are being sold to organisations rather than individual buyers.
The research also highlighted regional variations in block sales. In Cork, almost one in four of all new homes sales were part of block sales, equating to 457 units. Galway saw 27% of all new housing sold as part of block sales, while in Limerick, the figure was 55%. Outside of Dublin, county Kildare registered the highest volume of new homes sales in 2023, with almost three-quarters of these units sold to private individual buyers.
The research also raised concerns about the accuracy of the Property Price Register (PPR). DNG estimated that as much as 30% of new homes sold every year are not being properly registered on the PPR. This is because, in many instances, block sales in a particular development are being registered on the PPR as just one transaction. The New Homes Transactional Analysis Report cited last year as an example, when 5,163 new homes sold as part of block sales were not captured by the PPR. This was equivalent to 30% of all new homes sold in 2023.
When the unregistered sales are added to the official figures, the total number of new homes sold in 2023 increases to 17,039. This highlights the importance of accurate reporting and transparency in the property market. The research provides valuable insights into the dynamics of the new homes market and underscores the need for more accurate data to inform policy and decision-making.
Overall, the DNG research paints a picture of a market where block sales are increasingly dominant, and individual private buyers are being squeezed out. The underreporting on the PPR also raises concerns about the accuracy of official data and the need for greater transparency in the property market.
