Central Bank cautious on future for property

THIS week’s Central Bank Stability Report 2006 was positive on the financial system, but less reassuring about the property outlook.

Its key theme was that the banks, which have contributed hugely to fuelling the property boom, will be safe even if prices tumble like a house of cards.

According to its own estimates, property is overvalued by 14%, which is a little shy of the 20% estimate from the Economic and Social Research Institute.