Dublin property prices down 27%

[pauriceenjack]

There are hoards of construction workers who have borrowed heavily, many who are out of work. Worse still many bave bought a lot of construction plant which is surplus to requirements. Much of the bidding was speculative in that many houses were bought in the knowlege that the rent would not cover the mortgage.

People were happy to supplement the rent form their earnings to pay a mortgage when appreciation was the norn. However how many will continue to make sacrifices from the family budget to pay a loan on an invsetment that is not performing

Many in the construction field will conclude that they are better off on the dole with the state paying their mortgage( at huge expense) because of falling rates.
I am told that you can get blocklayers now for 40 cent a block down 80%

[Anorakphobia]

The artificial gerrymandering of asset classes worldwide is the greatest scandal of the 21st century.
Stock markets are now being openly and artificially inflated by central banks, governments at the beck and call of hugely powerful vested interests.
This is an appaling cycle we are in.
Governments beholding to these powerful groups.
In Ireland this is of cousre best manifested by the property sector
Irish Life have now announced they will not allow withdrawls from their massive property funds.
Hibernian had already done likewise, so I dare say, they will all follw suit.
Therefore what we have will be a totally false support of tens of billions of commercial property where people want to sell but are being barred from doing so.
This will allow these institutions to place a totally false market valuation on these properties.
In turn Banks who are holding tens of billion of similar properties as collateral for property speculators can similarly book value this crap at inflated levels and announce that their loan books are rock solid!

Farcical.

[pauriceenjack]

Why should 400% capital appreciation in property be sustainable where there is no shortage of land?

[rockyracoon]

Like all the indicators bandied about Ireland in the last 10 years, I don't believe this one either. Local market conditions will dictate price levels based on supply and demand. Right now I can look out the window and physically see 9 empty houses that have been on the market for over a year. The approximate population of this area: c. 100 people. This more than some random number postulated by the media or government tells me all I need to know about the local housing market.

[kerrynorth]

Why should 400% capital appreciation in property be sustainable where there is no shortage of land?

The planning system me boyo! Allowing zoned land to be hoarded by a near cartel with no penalty for not developing within a defined time frame.

[pauriceenjack]

A suitable tax would have prevented all that on land undeveloped after 2 years

[Eddiepops]

My heart bleeds for all of the poor property owners in Dalkey and Killiney.

And let's not forget the poor, struggling, starving developers and speculator. What about their plight?

[ballot stuffer]

My heart bleeds for all of the poor property owners in Dalkey and Killiney.

And let's not forget the poor, struggling, starving developers and speculator. What about their plight?

With a staggering amount amount of loans by Irish banks to highly geared property developers, I for one am quite worried that a few large developers may fold.

The whole counties savings are lent out to developers.

"I don't have your money here. It's at Bill's house and Fred's house!"

Except in this case the developers havn't sold the houses to Bill or Fred yet.