Falls in Irish shares may lead to 'significant' decline in new builds – Irish Examiner

There could be a “significant reduction” in the building of new commercial and private rented sector properties – typically apartment blocks sold to big international investment funds – if the coronavirus outbreak continues to prompt a fall in the value of Irish property-related share prices, Davy has said.

In a research note Davy said equity market weakness following the outbreak of the coronavirus has resulted in the valuations of Irish-listed property stocks falling below replacement costs.

“If this persists, then we can expect a significant reduction in new supply. The market is now pricing in a downcycle in Ireland,” said Davy analyst Colin Grant in the note.

Shares in Irish property-related companies Ires Reit, Hibernia Reit and the Dalata Hotel Group all saw hefty double-digit percentage falls last week as virus-led selling fever gripped stock markets.

“The stock market tends to lead the direct real estate market. So, if current

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