ESRI dismisses property bubble scare

THE deterioration in the economy will not cause a house price bubble, the Economic and Social Research Institute has said.

Despite poor growth forecasts for this year and the next, the ESRI’s David Duffy says price increases will moderate considerably as the economy slows, but talk of a bubble in the market will not stand up.

Price increases will moderate to about 5% per annum, but the level of demand will ensure that prices will not collapse, as forecast by The Economist.