Dublin property stocks take a dive after Sinn Fein surge
Shares in Dublin property firms took a hit today after Sinn Fein won the most first-preference votes in the general election.
The left-wing party and former political wing of the IRA secured 24.5% of all votes but fielded only 42 candidates – far below the 80 that any government needs to have a majority in the Irish parliament.
Shares in housebuilder Glenveagh Properties had dropped by 7.4% by 1.30pm today since trading began this morning, while Cairn Homes lost 8.5% over this period.
Shares in Dublin property firms took a hit today after Sinn Fein won the most first-preference votes in the general election.
The left-wing party and former political wing of the IRA secured 24.5% of all votes but fielded only 42 candidates – far below the 80 that any government needs to have a majority in the Irish parliament.
Shares in housebuilder Glenveagh Properties had dropped by 7.4% by 1.30pm today since trading began this morning, while Cairn Homes lost 8.5% over this period.
Ireland’s property REITs also suffered, with shares in residential specialist Ires slumping by 6.7% since opening, Hibernia REIT sinking by 3.6% and Yew Grove easing by 1%.
Sinn Fein has promised a large-scale public housebuilding programme “over the lifetime of a government”, which would see 100,000 public homes built, comprising 60,000 social homes, 30,000 affordable homes and 10,000 affordable rental homes.
It has also committed to freezing rents and has pledged to abolish the local property tax, claiming the levy hits low- and middle-income earners harder. Its abolishment could cost the Exchequer around €440m (£373m).
Additionally, it would undertake a full review of the tax rate paid on distributions by all major REITs in Ireland, arguing “their large-scale predatory buying” has resulted in a loss for the taxpayer.
Main image: Michael Runkel/imageBROKER/REX/Shutterstock
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