Ireland’s house prices plunge further as crisis deepens
House prices in Ireland are expected to fall for years to come, as it braces for massive tax hikes and sharp spending cuts. The painful measures are conditions for the €85 billion (USD113 billion) bailout from European Union (EU) and the International Monetary Fund (IMF).
Ireland’s house price crash, one of the worst in Europe, has wiped out almost a decade of gains. In Q3 2010, the average price of houses fell 14.8% to €198,689 from a year earlier, 36% down on the peak price of €310,381 reached in Q4 2006, according to Permanent TSB/ ESRI house price index.
In Dublin, the capital, the average house price plunged 21% from a year earlier in Q3 2010 to €238,986. Areas outside Dublin were also badly hit, with the average price 11.3% down. to €179,721 over the same period.
