Liquidity an issue for property companies

THE challenging market conditions currently evident in all aspects of the property market here are likely to continue for sometime, unless “something dramatic happens with the banks to improve liquidity,” according to the head of the property company, Savills Hamilton Osborne King.

The company’s managing director, Angus Potterton said yesterday that while appetite still exists amongst Irish buyers, the tightening of credit and funding from the banks has made it a very difficult time for property companies.

Mr Potterton said that it would be no surprise if the downturn in the property sector continued for up to two years. He added that while HOKs Property Management and Valuations divisions are continuing to perform quite well, its transactions arm — the main buying and selling business — has seen turnover for the first half of this year decline on a like-for-like basis. The overall volume of transactions conducted by the company has been badly hit by the continuing credit crunch.