Ask the experts: Is another property bubble forming, as some people are claiming?
No. A bubble is associated with excess credit - it could be argued that we have the opposite problem. That said, we don't have a functioning market, and that is always a risk.
Michael Grehan is MD of the Sherry FitzGerald estate agency group, which has a 66-branch-strong network, including franchises. He has more than 28 years’ experience in the property sector.
Unlikely! Many purchasers have bought with a large element of cash. In our experience, the majority of buyers are purchasing with a favourable LTV rate and if banks continue their policy of cautious lending, we do not foresee another property bubble.
Darina Collins is a director and founding member of the Real Estate Alliance (REA), a partnership of more than 50 estate agency firms nationwide. She is also a partner in REA O’Brien Collins, the Drogheda-based estate agency.
I don't believe there is. Some so-called 'experts' claimed such was happening some four years ago but it didn't. There is certainly no sign of a credit bubble, which caused the last property crash, but it does need to be watched for into the future. Supply and demand issues can lead to market revaluation, which keeps a check on prices. It's only a problem if it is out of what could be considered the 'ordinary'.
Pat Davitt is the CEO of the Institute of Professional Auctioneers and Valuers (IPAV). He has more than 35 years’ experience in the sector, spending much of it running a family-based auctioneering firm in Mullingar.
We clearly aren't addressing some of the dysfunctional elements of the property market, especially the need to get more serviced land on the market to help drive supply. Is there a residential market bubble? While prices are increasing, we see these as being driven by demographic and income growth as well as supply and demand imbalances, rather than any lending-driven bubble.
Áine Myler is the director general of the Society of Chartered Surveyors Ireland (SCSI). She holds a master’s degree in planning and development economics, and has worked in estate agency for 26 years and in later years as a consultant.
No. A bubble is characterised by house prices that are grossly inflated for a prolonged period; this is not the case in Ireland. The Central Bank fiscal rules are assisting and will continue to assist in regulating future price rises and it is our view that Ireland is now entering a new phase that is heading towards price stability.
Keith Lowe is CEO of Douglas Newman Good (DNG), a national estate agency network which has 75 branches throughout the country, including franchises. He has 33 years’ experience in the sector, having joined the firm in 1984.