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Sam Boal/Photocall Ireland
bubble bubble

Does Michael Noonan believe that there is a property bubble?

Not really, it would seem.

THE FINANCE MINISTER says that any discussion of an emerging property bubble must be had against the context of peak property prices.

In an answer to independent TD Richard Boyd Barrett, Michael Noonan told the Dáil that his department had no specific plans to tackle rising property and rental prices outside of those in the Construction 2020 plan.

Despite disposable income dropping year-on-year, Noonan said that prices are down on their peak in 2007.

“It should be remembered that residential property prices fell by just over 50 per cent from peak-to-trough and that residential property prices nationally are still 46 per cent lower than their highest level in September 2007,” Noonan said.

In Dublin, residential property prices as measured by the index remained unchanged in March and were 14.3 per cent higher than a year earlier. As a result, Dublin residential property prices are currently approximately 50 per cent below their peak in early 2007.

“This is the background against which any appreciation in house prices must be assessed.”

Noonan said that the Construction 2020 document, which has been called “an announcement about announcements“, will decide the government’s strategy on rising property prices.

“I wish to assure the Deputy that my Department will continue to closely monitor developments in the property and rental markets.

“I am also satisfied that actions set out in the Government’s Construction 2020 strategy represent a comprehensive response to the challenges facing the property and construction sectors.”

Read: Why is this house so expensive?

Opinion: The issue at the heart of our housing crisis is an unaffordable private rental market

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