David McWilliams: This time the overheating is different
Dublin’s residential property market is now part of a global business
Rental squeeze: Dublin’s property market is profoundly different from 10 or 15 years ago. Funds are buying up large developments, leading to the professionalisation of landlordism. Photograph: Bryan O’Brien
The Irish economy is not overheating, because the Irish economy isn’t really a distinct economy in its own right. It is a number of smaller economies, some of which compete in the global trading system and some of which are protected and compete within the local or national system. Bits can overheat at different times.
One area of the economy that displays the most significant signs of overheating is the property market, where overheating is evident in Dublin, particularly in the area between the Grand and Royal Canals, in the centre of the city. Elsewhere there is some recent evidence that properties are not selling near as quickly as vendors were led to believe they would.