Following the report from GeoDirectory showing that the number of new buildings fell by 23% for the first 6 months of 2012 compared with the same period of 2011 the question must be asked how much more can it fall.

From the height of 2007 when 60,781 buildings were built to today when an estimated 11,240 are to be built this year the news for the construction sector continues to be bleak.

While the recent NAMA announcement of an extra €2 billion being made available for construction has been heralded as a lifeline for the construction sector this is likely to be mainly finishing existing housing estate or commercial properties and will not have much impact on the amount of new properties built.

Buried in the announcement was some signs of life for a number of counties – Carlow, Cork, Clare, Tipperary, Galway, Leitrim and Offaly all recorded rises in the number of new buildings for the first half of the year. With the recent sale of the ghost estate outside Tullow, County Carlow for four times over its stated reserve Carlow may be somewhat seeing a “Boom” in housing but with the current over supply generally around the country, this may be short-lived.

The highest recorded increase was in Cork where 777 residential and 69 commercial properties were completed in the first 6 months. The announcement this week by O’Flynn construction relating to Ballincolig may be a sign that areas around the main cities of the country are experiencing a rise in demand.

As reported on Insolvency Journal last week, house prices and demand around the Dublin area have seen a small rise in price with many housing agents reporting over 40 interested parties attending many properties over the weekend.

It remains to be seen how the property market will continue over the course of the year but based on reports and market knowledge it seems there will be a demand for new housing around the main cities of the country with the periphery counties still suffering with lack of demand.

By Neil Mullarkey