Hooke & MacDonald's latest commentary on the residential property market has suggested that there are encouraging signs of a pick-up in activity in the sector.

The Dublin-based estate agents estimate that current supply levels are strong in the new homes market, with plenty of good value on offer to aspiring homebuyers.

However, the company warns that this favourable level of supply is not set to last, especially in Dublin, as new home building nationally is set to fall from just over 88,000 units last year to around 75,000 units by end 2007 and 65,000 units in 2008.

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Latest figures from the firm also reveal that in Dublin new home completions are forecast to fall from 19,470 units last year to 16,000 units in 2007 and to 13,000 units in 2008.

The commentary concluded that there is a danger that the pace at which new home building is slowing will result in the re-emergence of considerable supply-demand gaps in certain locations, particularly within the Dublin market.

(CL/SP)