Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
By Francys Vallecillo | October 14, 2013 9:55 AM ET
Ireland's residential property market, one of the hardest hit by the economic downturn, is showing signs of a robust revival.
The real estate industry's resurgence led to a jump in Ireland's total construction in September, marking the first increase since 2007, according to data released this week.
The Ulster Bank Construction Purchasing Manager's Index increased to 55.7 from 49.7 in August, moving higher than the 50 line which divides expansion from contraction. Total construction was spearheaded by housing development.
"Housing was again the strongest sub-sector, as activity expanded at its fastest pace since December 2005 following a third consecutive above-50 reading," Simon Barry, Ulster Bank chief economist for Ireland, said in the release. "The September results show that the nascent recovery in activity levels is producing a stabilization of employment among survey respondents."
A construction boom in the country at the turn of the century was fueled by residential development, led by easy lending. But the market crashed when the lending stopped during the crisis. Housing prices in the country posted one the largest declines in the world, falling more than 50 percent in some areas.
But now the residential market is gaining momentum. Home prices rose for the fifth consecutive month in August. Prices rose 0.9 percent in August and were 2.8 percent higher than in August 2012, according to the Central Statistics Office.
Home prices in Dublin were 10.6 percent higher than a year ago.
"There is no doubt that lack of supply has driven Dublin house prices up," Alan McQuaid, chief economist at Merrion Capital, recently told the Wall Street Journal.
The Ulster Bank survey also showed an increase in commercial property. New construction business grew for the third month in a row in September, the fastest pace since November 2006.
Looking forward, the survey shows optimism for the 12-month activity outlook, which jumped to the third-highest in the series history.
The country could be the first euro zone country to exit its EU/IMF international bailout by mid-December, Reuters reports.
Ireland has a resilient population, it will return to growth and prosperity. Eternal doom and gloomers were wrong full stop. They had no understanding of Ireland. They must be weeping now because not only did their dreams of Ireland style catastrophes in the richest countries in the world fail to eventuate but now Ireland is recovering nicely from its depressed real estate market.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Ireland has a resilient population, it will return to growth and prosperity. Eternal doom and gloomers were wrong full stop. They had no understanding of Ireland. They must be weeping now because not only did their dreams of Ireland style catastrophes in the richest countries in the world fail to eventuate but now Ireland is recovering nicely from its depressed real estate market.
Yeah, they'll recover from the US banks bringing down their economy eh Skamy?
Any more fairy tales to tell us?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Yeah, they'll recover from the US banks bringing down their economy eh Skamy?
Any more fairy tales to tell us?
another snide one liner putdown, typical of your contributions, if you got nothing new to add why not stfu???
Hark! Enter Siemen!
My point is very simple and I have written and great length about it before: in relation to Ireland, I have caught Skamy out time and time again talking absolute rubbish. Lies. Falsehoods.
She refuses to acknowledge that once pointed out to her.
In fact, she goes on to peddle the same clap trap again and again.
Its really quite annoying.
EDIT: and this is about facts not opinion. Her opinions are daft too, but that's another matter.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Residential property prices at a national level in Ireland increased by 3.6% in the year to September, according to the latest figures from the Central Statistics Office.
This compares with an annual increase of 2.8% in August and a decrease of 9.6% recorded in the 12 months to September 2012, indicating that the market is moving towards recovery.
On a monthly basis residential property prices grew by 1.8% in the month of September. This compares with an increase of 0.9% recorded in August and prices grew by 0.9% in September of last year.
In Dublin residential property prices grew by 3.9% in September and were 12.3% higher than a year ago. Dublin house prices grew by 4.2% in the month and were 12.2% higher compared to a year earlier. Dublin apartment prices were 11% higher when compared with the same month of 2012.
But a CSO spokesman said that it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series.
Also the recovery is centred on Dublin. The price of residential properties in the rest of Ireland fell by 0.1% in September compared with a decrease of 0.1% in September last year. Prices were 2.6% lower than in September 2012.
There is also still a long way to go. The data shows that house prices in Dublin are 49% lower than at their highest level in early 2007. Apartments in Dublin are 59% lower than they were in February 2007. Residential property prices in Dublin are 51% lower than at their highest level in February 2007.
The fall in the price of residential properties in the rest of Ireland is somewhat lower at 48%. Overall, the national index is 48% lower than its highest level in 2007.
Irish property bubble by... american banks? Wow, I thought conspiracy theories were for bears only. I guess every position has its crackpot extremists.
skamy
15 Oct 2013, 02:47 PM
Ireland has a resilient population, it will return to growth and prosperity. Eternal doom and gloomers were wrong full stop. They had no understanding of Ireland. They must be weeping now because not only did their dreams of Ireland style catastrophes in the richest countries in the world fail to eventuate but now Ireland is recovering nicely from its depressed real estate market.
By the sounds of it Skamy, we're probably about the same age. I personally already live in one of the nicer suburbs in Perth (Mt Lawley) and I'm a believer that property investment can be an instrument of wealth creation. So I am by no means an 'eternal doom and gloomer'. But even I must concede that Australia does have a substantial property bubble. The only question is, does it pop or deflate? The higher prices rise on the backs of investors, the more likely it'll be the former.Can't agree with everything, but the similarities between the two countries, especially the media reactions, are eerie.
I must concede that Australia does have a substantial property bubble
Yet you think prices will boom from here. Doesn't that make a mockery of the term 'bubble'? You might as well call it a pineapple. People in Ireland in 2000 were calling bubble. Prices doubled after that, and even after they crashed, still remain above 2000 levels today.
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