What do prices look like when considered from a GDP per capita point of view? (in advance I’ll let the GNP crew know that we’ll include that too).
A report from Savills in the UK looked at property prices there and asked if they were becoming more ‘standardized’ versus Europe. The graph below is from the report.
When viewed from this perspective you might think that property prices here are undervalued (implied by the lower multiplier), of course this doesn’t factor in the supply, demand or anything else, it is merely using a reference point. The implications of this might hold in other countries, but from our perspective Ireland is a little different.
In Ireland the multiplier is far higher because of that GDP/GNP divide which is demonstrated in the following graph.
What this shows is that our multiplier is closer to 5.3 than 3.71 when you look at it from a GNP point of view. The …