Fire sale could halve property prices, says Parlon

irishtimes.com/newspaper/ireland/2009/0804/1224251960911.html

…ANY SUBSTANTIAL “fire sale” of residential or commercial property could result in prices falling by 50 per cent or more, the head of the Construction Industry Federation (CIF) has claimed. The organisation’s director general Tom Parlon said the prospect of major banks seeking recovery of their debts from developers would have a disastrous effect on property prices and the economy. He said the whole rationale of establishing the National Asset Management Agency (Nama) was to prevent such a scenario…

Regardless of what Parlon says [and what NAMA may hope], a 50% fall is on the cards one way or another!

I will personally meet Mr.Parlon and remind him that we are all citizens of this state and his actions and behaviour amount to treachery.Tom has travelled a long way.

TOM PARLON SEZ PROPERTY MARKET IS CURRENTLY AT LEAST 50% OVERVALUED.

The only thing preventing a restoral of market equilibrium is a massive taxpayer funded bailout of the property market via NAMA.

Well, thanks for that Tom, but we knew that already.

Once a pr!ck always a pr!ck

Words fail me. It is truly disgusting.

Why not treble our national debt and stockpile food in order to keep it from people who need it and keep prices high for the producers?

Yet for shelter this approach is acceptable.

Good

I have never trusted this devious turncoat but are we now getting to the real crux of the situation? The real reason for NAMA, not to save Banks of systemic importance, but to place a floor under the falling property market, whilst simultaneously protecting VI’s?

And, in reality can any Government really prevent a property bubble popping? It seems to me that many have tried Internationally and attempts only ever served to worsen the extent of the crash. Perhaps we don’t see it now but NAMA could be the Irish equivalent of the British Poll tax which put the throttle down on the late eighties UK crash.

If that is the case, Sandbags won’t stop this tsunami, they’ll invite it. Keep on talking Tom!

You have fallen into the old trap xman.
If prices have a further 50% to go, then they are currently 100% overvalued.
(Technicially you are correct with at least 50% … but I know what you meant xman … I know what you meant !!) :nin

thepropertypin.com/viewtopic.php?f=4&t=5878

At least Tom is talking about price, “value” is a completely different concept as NAMA is proving… :open_mouth:

The wheels are coming off and Tom and company are touching cloth, “dont you just love firesales” :smiley: .
Hold on a minute, how can it be a firesale if prices are only returning to the mean? Surely if the developer paid the builder too much to build thats his problem, its not a firesale until its prices from the previous decade Parlon.

In essence, Parlon has just admitted to everyone where he thinks the market truly lies - he is just doing his utmost to prevent it from getting there.

That would be 100% No?

edit: bother. Didn’t read down to mr_anderson’s post. Still, at least my maths agrees with his!

You are forgiven !

Wait for my edit… :blush:

Don’t you just hate it when the reply comes before the correction ! :laughing:

:laughing:
Yeah, 'specially when it is my wife saying ‘yes’ to my quesion on whether to build a house three years ago…

Boom boom. Appearing all week folks. :smiley:

Just a small point.

Parlon said a fire sale could cause prices to fall by 50%, he never said property was overvalued bu 50%.

I’ve seen many shops slash their prices by 50%+ when they go into liquidation, are you saying that their products were 100% over priced to begin with??

If a 50% drop is what it takes to shift them, then yes.

Don’t confuse price with value.

Don’t confuse price with cost.

Property worth is not based upon its cost, it is only worth what someone is willing to pay for it.
Parlon is admitting that people are only willing to pay 50% of the current price.
Consequently, property is only worth 50% of its current price.

With regards to your shop analogy, yes.
Perhaps that is why the shop went into liquidation in the first instance.