If property prices slow or fall, will rents decrease?

[murphaph]

Any ideas? I would have thought some knock-on effect would be felt, but I'm not sure it would be immediate.

 

[ClubMan]

I would have thought some knock-on effect would be felt, but I'm not sure it would be immediate.

Knock on effects from what precisely? No offence but your query is sort of meaningless as to expect a meaningful answer is to assume that people can predict the future.

 

[markowitzman]

I think it is as much a supply and demand issue than proeprty values per se causing rents to increase or decrease. Areas where demand is high relative to supply (dublin city centre and southside?) should still command high rents?

 

[ClubMan]

Still don't understand what the context of your query is - e.g. is it in relation to some recent event that might impact the residential rental property market. Other that that we're in the realm of pure speculation and guessing so all subsequent discussion is largely pointless.

 

[mikeyny]

possible that murphaph comments are related to the article below
from Businessworld.ie

Quote:

Senior officials from the OECD and the Central Bank recently accepted that the Irish property market is overvalued by 15pc, according to a confidential account of their meeting produced by the Paris-based body.

Central Bank officials, however, were reluctant to disclose such a figure in case it might destabilise the Irish property market, the Irish Times reports.
At a meeting of senior officials from the Organisation for Economic Co-operation and Development and the Central Bank on the subject of the property market, Irish officials were told of OECD research that suggests that Irish prices were 15pc overvalued.


The memorandum notes that senior Central Bank officials agreed with the judgement.

The think-tank represents 24 of the world's leading economies, including Ireland. It conducts in-depth studies of a range of policy topics and issues policy advice to its member states.

The views of the OECD and the Central Bank are recorded in a memorandum summing up the preliminary conclusions of the next Economic Survey of Ireland, which is due to be published officially in January.