Quotes of the Week 08/02

‘The uncertainty in the housing market in the last 12 months is now being reflected in the dramatic fall off in supply. This will curtail choice for new home buyers later in 2008. Current evidence illustrates that it is now cheaper to buy one's own home rather than renting, a situation that is unlikely to be sustained in the future with reductions in housing completions on the cards.’ - Hubert Fitzpatrick, Director, Irish Home Builders Association.

“The further house prices fall, the greater the positive impact on affordability and the greater the support for the housing market in the future. Indeed, following the recent price falls, and with official interest rates on hold since mid-2007, the deterioration in affordability has now halted and is beginning to improve… our analysis indicates that a fall in prices of around 15% from their peak (at the start of 2007) could well improve affordability conditions sufficiently to restore some momentum to the Irish housing market. – AIB Irish housing market update.

“Ireland, and in particular Dublin, has some of the highest retail rents in Europe. A booming economy, limited shopping centre space and strong consumer demand has underwritten this segment of the economy for the past decade. However, this support is beginning to turn.” - UBS report on commercial property that predicted a 30% fall in prices.

“If the property market cycle in Ireland is to follow the long-term trend, we can expect that total returns in the Irish market will certainly revert to single digits in 2008 as in previous cycles. However, a drop in values of 30 per cent is not on the cards” – Marie Hunt, Director of Research, CBRE.

"To say the commercial market could take a 30 per cent hit doesn't reflect what's happening on the ground. If anything is taking a hit, it's development land.” – Robert Ganly, Knight Frank.

“This latest (MyHome.ie NCB) Barometer Report confirms that we are now firmly in a buyers market. However, the further drops in asking Prices over the final quarter of 2007 indicate that sellers are beginning to face up to the reality of the market and accept lower prices. Estate agents are reporting some increase in transaction activity but it will take more time to clear the overhang of stock in the market.” - Jim Miley, Chief executive of MyHome.ie

“There are serious concerns that Minister Cowen's prediction of housing completions in 2008 is over-optimistic. This will mean further shortfalls throughout the year as tax revenue from new houses falls short of targets" – Fine Gael’s finance spokesman, Richard Bruton.

“I don’t accept we overheated the economy. We dealt with conditions as they were …The opportunity arose to do things and they were done. But look at the evidence, look at how our position compares to other countries.” – Finance Minister Brian Cowen.

“The way we currently treat foreign dividends, a key aspect of our foreign direct investment regime, badly needs an overhaul to keep up with European competition. Instead, what we got (in the Revenue Commissioners new regulations) is more likely to scare foreign investors away because of its complexity.” - Brian Keegan, director of taxation with the Institute of Chartered Accountants of Ireland.