The negative sentiment in the residential property market following the third Bacon report dissipated by the end of last year but property prices may be slowing, auctioneers Sherry Fitzgerald said today in its annual results statement.
"Activity levels in the first quarter have accelerated as a result and are significantly ahead of the corresponding period last year," it said.
Sherry FitzGerald reported full year profits for 2000 in line with forecasts. Pre tax profit rose 26 per cent to euro 4.12 million from euro 3.27 million on a 57 per cent increase in turnover to euro 27.23 million.
Overall, the auctioneer said the Irish economy and property market are undergoing a period of transition.
"However, we are satisfied that the underlying strength of demand which is supported by the demographic profile of the population and a favourable interest rate environment will underpin the stability of the property industry and we are looking forward to the years ahead with confidence," it added. The company warned that the slowdown in the US economy may have a short term impact on the group's commercial operations as occupiers begin to postpone expansion decisions.
But it added that the combination of prudent expansion by Irish based US multinationals in recent years and strong underlying demand should insulate the sector in the medium term.