Property crash one of worst in the world
Published 27/08/2011 | 05:00
THE Irish housing market suffered the world's biggest slump in value during the second quarter of 2011.
The country's average house price fell 5.37pc in the second three months of the year compared to the first quarter, once inflation was factored in.
And prices were down 14.84pc compared to a year previously. Only Bulgaria fared worse.
UK research group Global Property Guide noted that the year-on-year fall in Ireland's house prices was even worse than the 11.8pc drop in the previous year.
"House prices are still over-stretched, and developed countries are still weak, so price falls were to be expected," according to Matthew Montagu-Pollock, the publisher of 'Global Property Guide'.
And he said recovery would also bring a "sting in the tail" for consumers because higher inflation would eventually lead to higher nominal interest rates, "choking" strong upward house price movements.
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