Yet Another Warning of a Property Bubble: More Perspectives

The Organization for Economic Co-operation and Development has voiced fears that the economy is overheating. This comes soon after the Fiscal Advisory Council heeded similar warnings earlier this week.

The OECD believes that the banking system is still fragile, with bad loans still accounting for 17% of the total. And while the government has already put into place plenty of macro-prudential policies, there is still the possibility that rapidly rising prices lead to another bubble and burst that would disrupt the delicate economy.

Indicative of OEDC’s stance, overall property market prices are up 8.2% this year at the end of April. The boom in construction is already visible on Dublin’s skyline. Irish Times counted 70 construction cranes towering over Dublin from the 7th floor of their office building on June 1st. This number represents a sizable increase compared to the number Irish Times counted in the first few months of this year. The number of cranes is predicted to continue to rise based on the number of large …

Read More