Shares in Irish listed house builders McInerney fell by as much as 36% this week when they after the firm took a €156m impairment charge against their Irish and British land holdings. The total impairments over the last year now stands at €266m. This write done amounts to 52% off the value of its land values and is the first real public sign of such a percentage among the larger Irish House builders. As a public company they are obliged to give full disclosure to these facts as opposed to the vest majority of other developers who are limited companies and such disclosure is required.
The fall of 52% is truly reflective of a segment of the property markets that has suffered perhaps more than any other. With a complete lack of finance, limited demand for housing units and sentiment within the sector at an all time low the short term prospects remains very bleak. Indeed in the commentary provided within McInerneys published accounts they state “it does not see any immediate improvement”.