Thursday, Aug 28, 2008
Interesting development across the Irish Sea
4NI.co.uk: NI Developer Cuts House Prices By 40%
A Northern Ireland building firm has slashed its house prices by almost 40%, in a fresh bid to inject life into the ailing property market. Fraser Homes has trimmed £90,000 off the price of its semi-detached properties in Glengormley, reducing the price from £229,500 to £139,950.
Posted by quiet guy @ 09:41 PM (649 views) Add Comment
14 Comments
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1. Sasspay said...
OK, this would tempt me back into the market. It's just unfortunate that we in mainland UK will have to wait another couple of years until they reach this level.
2. Tara747 said...
Gotta hand it to NI, we may have had the maddest boom but I think we are having the most dramatic crash as well!!! These houses are still well overpriced imo (the area is not great).
3. Tara747 said...
p.s. bet you're all jealous :)
4. shipbuilder said...
It all helps to accelerate the crash....
5. enuii said...
Just goes to prove how overpriced they were in the first place!
6. Paul Mccune said...
yes but look at north down bangor etc . very nice area . best marrina in uk . still too high by a third i say
7. d'oh said...
enuii, you beat me to it.
8. nubbers said...
I seem to remember angry scenes in the US earlier this year, as developers started selling houses at a similar discount. Those who had previously bought new houses at overinflated prices were rather annoyed to find their same developer effectively devaluing their own houses.
I wonder if we are going to start seeing the same here?
9. wiltshire said...
I wonder what trickery the Nationwide and Halifax will think of to try and enable them to exclude NI from the UK figures from now on? Maybe they'll issue 2 sets, one set including NI which will be considered to be 'dodgy' and the good old 'Mainland' figures which "are a much more accurate reflection of the current market situation" blah blah......
10. titaniccaptain said...
@ shipbuilder
"It all helps to accelerate the crash...." yeah but it also shows that the crash could be alot worse.......also taking into consideration the BOE's new forecast of 30% drop potential in house prices if interest rates dont go down, predictions of falls over 60% from peak dont look so far fetched
11. mark wadsworth said...
warming to what TC says, even a realist knows that it will be 60% fall for new builds that are badly built in not so nice areas.
Up to know, people have been assuming that the gummint would try and inflate away the HPC, so that nominal falls don't look so bad (like in 1974 - 75).
It is, however, quite possible that we'll have deflation over next few years, in which case you can add a few per cent deflation to your own expected total fall, i.e. 40% real fall plus 5% deflation = 45% nominal fall.
12. Tenyearstogetmymoneyback said...
The key question is
What did these houses cost to build ?
That will determine whether this is a one off fire sale by a builder desparate to avoid bankruptcy
or a new sustainable price model.
I would think building costs shouldn't be much different in NI to the mainland so if land here gets cheap enough........
:- Duncan
13. Tara747 said...
wiltshire @ 9
I don't think it matters to much to them, the transaction levels in NI have shrunk so much (fewer than 1,000 in the last quarter!!!) that they will not have a big effect on the UK-wide indices.
But can I just say again...... WAYHEY!!!!!!!!!!
14. Dbc Reed said...
Northern Ireland is due to have full rates (local tax) on empty houses from next April. Given what full business rates on empty commercial properties have done in England - massive price falls followed by tax avoidance demolitions- things could get really interesting over there.