AIB predicts soft landing rather than house price crash

AIB has become the latest financial institution to say it does not expect any price crash in the Irish property market.

Some economists have warned of the risk of a so-called "correction" in prices, but the majority have predicted that the housing market will instead experience a slowdown in prices and a soft landing.

In an assessment published today, AIB chief economist John Beggs said he did not believe the conditions existed for a price crash.

However, he did express concern about the economy's reliance on the housing market and the construction sector.

"Manufacturing is weak, we have weak exports," he said, "so we need to be sure that this construction sector doesn't come off the rails, otherwise we'll have two key parts of our economy not performing well."