Property market - Soft landing to cushion fall in prices

Latest property figures published by the Government do not auger well for the housing market, with the result that the recent uncertainty is likely to continue to cloud the Irish economy. In the past couple of weeks 12 construction-related firms have gone into liquidation, including a huge housing development company in Co Kilkenny.

Reporting what is happening in a realistic way should not be confused with talking down the economy. There are distinct signs of a downturn, but there are also indications that this may just be a realistic adjustment.

The latest figures show that a total of 21,181 mortgages were drawn down during the first three months of 2007 in comparison with 28,000 in the last quarter of 2006. This amounts to a precipitate decline of 24.5%.