A drop in the number of housing starts may indicate that the housing market has peaked, a leading construction firm said today.
Davis Langdon PKS (DLPKS), one of Ireland's leading construction cost management firms, has reported a slowdown in house building commencements over the last quarter of 2005 and the first quarter of 2006.
In the company's Summer 2006 Review of the Construction Industry, Norman Craig, managing director of DLPKS, warned: "Housing starts recorded in the last three months of 2005 and the first quarter of 2006 show significant reductions.
"Whether this represents a trend or an aberration remains to be seen. However, it must be pointed out that six months of sizeable reduction commencements cannot be ignored and may be seen by some as heralding the peak of the housing market."
Nonetheless, Mr Craig said the "building bonanza" is continuing at pace, with building activity on course to grow by 1 per cent this year.
"Once again, housing led the way as the amazing growth of the Irish construction industry continued in the first three months of 2006. In terms of housing, there was a 25 per cent growth in completion of new homes in January, February and March. Compared to the same period of 2005, a total of 22,000 new homes were completed as against 17,500."
DLPKS is confident that 80,000 housing completions will be achieved this year, however, and that construction will continue to grow.