Dublin houses overvalued by 25pc, as the report warns global boom ends

  • Dublin houses overvalued by 25pc, as the report warns global boom ends
    Independent.t. E.
    Property prices in Dublin is overvalued compared to incomes of people in the capital, according to international studies.
    https://www.independent.ie/business/personal-finance/property-mortgages/dublin-homes-overvalued-by-25pc-as-report-warns-global-boom-is-ending-37258910.html
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Property prices in Dublin is overvalued compared to incomes of people in the capital, according to international studies.

It was designed property in Dublin 25pc overvalued compared to incomes.

A survey conducted by magazine ‘the Economist’ also found that price growth in the capital of Ireland has a growth rate of 22 other global cities over the past five years.

In the edition of found property prices in Dublin grew by 62pc after the fall of the property, which began ten years ago.

‘The economist’ looked at median incomes, or middle income, and compared them with the prices.

It is trying to perform, whether market dynamics are being driven by “fundamentals or foam”.

After comparison of housing prices in the long-term median disposable household income, the study found, prices in Dublin 25pcs overrated.

The last median, or average, value of real estate in Dublin is €360,000, according to the Central statistical office.

25pcs in over-the estimate assumes the average property in the capital should be €270,000.

In Hong Kong the prices were 94pc overvalued, and 65pc in Vancouver.

In London prices were 50pc too high in comparison with average incomes.

The publication found the prices in these cities now could be a turning point.

Demand, supply and price of money may mean international boom ends: “as demand is weakening, supply is strengthening and increasing mortgage rates, the bull run in housing may be drawing to an end,” he said.

The new study comes as experts predicted the increase in prices due to sharply slow down, because prices have risen so much that they reached the limits people can afford.

Buyers are limited in what they can do rates by the Central Bank lending limits.

Experts in the field of real estate predicts a sharp slowdown this year.

Most expect that prices will rise by only 5 pieces in the next few months, according to a survey conducted by the Central Bank and the society of chartered surveyors Ireland real estate agents, economists, scientists and surveyors.

Latest official figures show an increase of 12 PCs..

The limits of Central Bank lending cited as a reason why growth is slowing, while there is some evidence of new properties for sale.

Economic growth is particularly evident in Dublin, where one-year expectations have fallen to just 2pc.

Slightly more than half of the experts expect prices to rise in the capital – from 98pc in the last year.

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