Tuesday, April 25, 2006

Irish Property Bubble

I decided to start this blog, dealing with the Irish property market, for a number of reasons and with specific goals in mind.

1. The state of the property market is a topic which attracts considerable attention, in the established media, in day to day conversation and on the internet. As no dedicated forum currently exists to discuss this hottest of hot topics, I’ve set up this blog.

2. I’m conscious that much of the media coverage in Ireland of the property market is unquestioning of the benefits of the unprecedented inflation in prices. I am also aware that many people are troubled about, both the sustainability of current property prices and wider economic and societal issues, which in whole or part can be attributed to the boom.

3. Quantifying the variables and identifying the metrics required to measure the performance of the Irish property market is difficult. Other property markets, notably the American, benefit from an abundance of statistics. In an ideal world we would have easy access to transaction evidence, sales prices, volumes, buyer type data and rental values etc. All of this information is currently collected by government and financial institutions; however accessing the data is not easy. I would hope that this forum would act as a receptacle for sources and a medium for publishing and discussing the same.

4. Finally I hope that this forum will attract sufficient interest to allow us to make it a source for contributors from as wide a source as possible. With that in mind I’m hopeful that others will be willing to add their insight and knowledge.


Duplex said...

The ERSI has issued yet another warning, regarding the the sustainability of current prices in the Irish property market. The institution states that a bubble has lead to a 15% over valuation in residential property prices. A sobering aspect of the ERSI report is that their assessment of the bubble was based on 2005 prices.

The latest TSB/ERSI House price Index indicates house price inflation of 9% in the first quarter, in the secondhand market in Dublin. These figures would seem to indicate that the bubble in the secondhand market in Dublin is approaching 25%.

Anonymous said...

Kachinnnggg!!!!penny might just be heard dropping from a considerable height now!