There seems to be a lot of action in the property scene at the moment. Site Value Tax proposals by the National Competitiveness Council http://www.irishtimes.com/business/economy/competitiveness-council-calls-for-introduction-of-site-value-tax-1.1629604, Government considering Vacant Site Tax proposals by Dublin City Council http://www.irishtimes.com/news/politics/coalition-considers-vacant-site-tax-1.1629056 and unspecified changes to planning law predicted by 'sources'.
This all points to one thing. There is a serious problem in property. Its not coming to the market quick enough. The properties available are generally not good enough, and the planning permissions attached to sites are either out of date or unsuitable. Furthermore, the financial mechanisms available to develop properties consist of either REIT funds or Student Accommodation. There's no problem with either mechanism, as long as there are multiple-choices in the market, but in reality its not a free market at all, nor has it been for a long time.
In Irish property, there is no Third Sector to speak of. Housing associations have a minute influence. There is no equivalent of UK's Locality, or Non-profit /social enterprise funds used in the US. There is no underwriting of community or social enterprise risk.
Compare this to innovative funds for enterprise and export which the government have been driving. The national government has a willingness to engage with innovative models of finance when it comes to IT, SME and jobs creation, but property is not on the same page. The reason is simple. The property sector was one of the main causes of the Irish collapse, and the government isn't going to go out of its way to help these guys out again.
Nama have made much mileage of the fact that the slight rise in property prices (in Dublin) justifies their policy of releasing so little to the market (in Ireland). However, this stance is looking more precarious by the day. Rather than looking like the big game player, who has resisted the temptations of firesales, they risk behaving as the monopoly landlord who restricts supply to the detriment of those who are in need of a reasonable product.
Under every scenario, Nama will have to offload a huge amount of property very quickly. The question is, will it be handing the ownership (or ownership of the loans .. whatever..) from one monopoly to the other? Where is the debate, research and work needed to create variety and opportunity in the property market?
