Looking For Bubble?

at

telegraph

Property prices have climbed to dangerous levels in several advanced economies, raising the risk of massive price falls if markets overheat, according to the Organisation for Economic Co-operation and Development (OECD).

Catherine Mann, the OECD’s chief economist, said the think-tank was monitoring “vulnerabilities in asset markets” closely amid predictions of higher inflation and the prospect of diverging monetary policies next year.

Fears of a ‘massive’ global property price fall amid ‘dangerous’ conditions and market slow-down (Daily Telegraph, January 2, 2017)

Meanwhile..

property
Good times.

Irish property prices to increase by at least 8% in 2017 (Fiona Reddin, Irish Times)

Thanks Louis Le Fronde

14 thoughts on “Looking For Bubble?

  1. Daddy

    Another chance for the already rich to get even richer by buying up cheap property, renting it out and then selling it at the peak again.

  2. Louis Lefronde

    Another example of The Irish Times puffing up the market. Less anyone forgets they’re in the business of selling property advertising.

    It’s a simple propaganda trick of ‘appealing to aspiration’ or selling fear (get on the ladder or it will be too late)

    When it comes down to it, its just the same old BIG LIE repeated again, which led to disaster back in 2009.

    1. Louis Lefronde

      Of course let’s not forget the Irish Times sold their D’Olier Street office for €50 million and bought a website (my home.ie) for the same price in 2006!

      1. Louis Lefronde

        Let’s start with the obvious. Supply in the Dublin market has been throttled by a combination of factors including Land Bank Hoarding, and the manner in which Nama has been operating among other things.

        If you look at the census figures from April 2016,http://bit.ly/2hNrKda you will note the following: there were 35,293 vacant properties in Dublin. There were only 1439 ‘vacation’ properties which means the total of vacant properties was 36,732.

        By limiting supply, demand sets the market at an inflated rate above true market value. One explanation for why this is occurring is that there are anti-competitive practices at play.

        Now consider the following, Ireland has one of the lowest population densities in Europe (68 per km2 for a population of 4,757,976 in an area of 70,273 km², the Netherlands has the highest density of 488 people per km2 with a total population of 16,645,313 covering 13,104 km²

        The population of Amsterdam is approximately 800,000 with the metropolitan area having a population of about 2.4 million people. Dublin City has a population of 553,165, County and city accounts for 1,273,069. The greater Dublin region has a population of approximately 1.8 million.

        The average price for a home in Amsterdam in 2016 is €242,089 in Dublin it is €314,311

        Average monthly rent for 45 m2 (480 Sqft) furnished apartment in Amsterdam is €1250 in Dublin it is €1279

        Explain, how the average price for a home or an apartment for rent of similar size is less expensive in Amsterdam than in Dublin?

    2. Spaghetti Hoop

      Less of a lie more of a massage. Because these headlines do pretty much what they intend to do – even if it is a faked fear.
      Given the wealth lost and gained by the property market movements, the tactics used to influence the market could be listed in a manual at this stage.

      Only one entity can exert real market controls via its policies – a government.
      These policies should be for the benefit of the population, not a select few – so, not the Irish Government then.

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