Ireland looks rockier still. Housebuilding accounts directly for a staggering 15% of national income and 12% of employment. Whereas prices have soared, rents have stagnated in recent years and, at 4%, rental yields in Dublin do not cover even the cost of borrowing. Now prices are flattening too. According to Morgan Kelly, of University College, Dublin, to return the ratio of prices to rents to where it was around 2000, real prices will need to fall by 40-60% in the next eight or nine years.
Hummm…I wonder what is the difference between the UK and Irish property markets that will susposely cause ours to crash, while the UK’s had a cooling? i.e. the UK market cooled (and some say is now on the rebound) - so why should the Irish market be any different? i.e. we’re cooling, so why will it not simply mirror what has happened in the UK and we get a simple recovery later on?
They have control over IRs and there is actually a building/housing shortage as evidenced in the much higher rents(as a yield ) on property over there. Don’t worry the UK will definetley have a crash like the early 90’s again. www.housepricecrash.co.uk