These properties are worlds apart as one is located in the Republic of Ireland and the other is in Sydney, Australia. But they have something in common; they are both in the multimillion dollar price range.
The Irish economy collapsed after the boom years of the Celtic Tiger and the effects of the GFC. Property values have halved in most cases and it will take many years before the economy recovers; possibly generations. You can see the terrifying figures showing the nation’s national debt to Gross Domestic Product for 2012 at this link.
Ireland’s woes were nicely summed up last year by Michael Lewis in an article entitled ‘When Irish eyes are crying.”, and I loosely quote “Ireland headed for bankruptcy with its own mysterious logic. In 2000, suddenly among the richest people in Europe, the Irish decided to buy their country - from one another.”
Australia is a different kettle of fish of course where the common misconception is that our great island continent is still “the land of milk and honey”. This may well be true long-term but the current reality is that consumer confidence “ decreased to -2.5% in August of 2012 from 3.7% in July of 2012.” and there is an uneasy feeling among us Aussies of doom and gloom.
The retail, manufacturing and property industries are all in the doldrums and large companies are going bankrupt every other day. The strong Aussie dollar has driven up the cost of exports, and as a double-whammy demand for our mineral resources from China (our largest trading partner) has dropped dramatically.
But the point of this article is not to be pessimistic about the future and I believe Australia has a very bright future. It is about the contrast in property values in the Emerald Isle and Australia and the difference in perception of value.
Both of these properties are on the market now at over US$10 million, but one of them is priced at over five times that amount.
Which one is it? Post your answer in the comments box below.
Reception rooms: 10
Separate cottages: 6
Land: 427 acres
Private jetty, pool and boathouse
Land size: Approx. 2 acres
~ Tim Mansfield