Arch Job Losses

from what I hear I’d estimate that the big 6 firms in dub have let about 400 people go between them this year.

Jobs could be tough to come by for a long while if this thing is dragged out in an attempt to prop people up. Apparently we’re nowhere near fair value in the housing market – house prices should be 12 to 14 times annual rent historically. With builders, banks, general public in denial this thing could go on for a lot longer than it would if the pain and the liquidation of mal-investmnet were just taken up front. It would be sharp and painful, but mercifully short unlike the propping up option which spells 10 years of inactivity…and political chaos no doubt!

“In the US, analysts claim that, in the long run, house prices should be equal to between 12 and 14 times earnings. This means that if a house is generating a rent of $10,000 a year, it must be worth between $120,000 and $140,000 a year.

Apply this test to Ireland. A quick search of Daft.ie will reveal, for example, that a three-bedroom house in Co Wicklow – advertised as an investment property – is on sale for €289,000.

The same website tells us that the average rent for a three-bed in Arklow is €850. So let us say that, in the best possible case, this place is rented for 11 profitable months a year – the final month’s rent goes on various costs. The implication from the American model is that the house is worth about €122,000.

The implication from this, compared to the advertised price of €289,000, is that the house is still wildly overvalued. The Irish calculation means that the house is trading at 31 times its annual yield. This clearly needs to fall dramatically by close to 60 per cent for it to make any financial sense to buy“. – David McWilliams, 26th Oct 2008

When opportunity knocks
http://www.davidmcwilliams.ie/2008/10/26/when-opportunity-knocks

more job losses in the new year?

I believe the RIAI estimate 50% of architects in Dublin have lost their jobs over the past year or so…

Then again, it’s a very ‘liquid’ market as a result, and with a captive audience…

i’ve heard of plenty more that have gone from (pick any number) to zero, with several more following in the next few months.

Have you been affected by the job losses in the architecture profession? – added poll

HI, i am th first in my firm to be cut, have been here for over three years.
Unfortunately all the places i was banking on like Dubai & Abu Dhabi seem to be stagnant, does anybody know where on this planet there is work for us Architects?

@Paul Clerkin wrote:

Have you been affected by the job losses in the architecture profession? – added poll

RTE Radio 1 1oC news is just about to do a piece about how 4 in every 10 architects here are likely to be out of a job.

I am hoping that this isn’t an optimistic estimate 🙁