Matt Cooper had Karl Deeter (Irish Mortgage Brokers) and Tom Lyons (Sunday Business Post) on his show to discuss recent developments in housing and how rents are rapidly rising. The focus was very much solutions oriented and some interesting thoughts came out of the conversation, in particular on the area of accountability.
This week on Talking Point the host Sarah Carey did a great job of examining housing issues with the panel of guests which in studio included Lorcan Sirr of DIT, Dermot Lacey a Labour Party Councillor and Karl Deeter of Irish Mortgage Brokers.
Many relevant points were made about tenure, about supply constraints and solutions as well as discussions about things that don’t often make the press – such as permanent tenures and the like. It is well worth listening back on given the breadth and expert insight of the show.
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 …