September 2, 2009
According to Ireland’s Finance Minister there are signs that the local property slump is bottoming out. Brian Lenihan is the first government official to call the end of the crash.
According to Reuters, Brian Lenihan told a parliamentary committee:
“‘We are very near it on the basis of the figures that we now have the data that we now have about the yield from property because the yield is at an all-time high relative to the assets which is a clear, objective economic indicator that we are approaching the trough,'”
Property Wire states: “But few are as bullish. A report by University College Dublin economist Morgan Kelly suggest that property values may only recover to less than half of their peak values and remain there for a decade or longer.”
Kelly’s outlook was presented to the High Court in Dublin in a legal application from leading Irish developer Liam Carroll. Corroll is seeking court protection for Zoe Group, his debt ridden development company.