Now, to answer your question:

1. House prices grew partly due to demand from immigrants (and other factors such as those you have mentioned. I.e., 325,000 PPS number issued to Polish citizens – obviously it does not mean that all of them stayed here, but it is a certain indicator)
2. House prices have fallen again partly due to both Irish Citizens and non-nationals leaving (i.e., 122,585 Poles in Ireland in 2011)
3. Now house prices are growing again due to factors indicated by you plus limiting supply plus demolitions – remember what media were saying only 2 years ago?:

http://www.independent.ie/business/irish/itll-take-us-43-years-to-fill-all-empty-houses-26863864.html

plus a strange feature of the Irish and British psyche which is a belief that house prices never go down – I heard that even from people who lived in the early 90s property-bubble burst London and I bet you we will soon start hearing it again).

If the government wanted the house prices to fall, the first thing they would do would be to abolish the Rent Allowance and incorporate it into a general social welfare system the UK-style, which would immediately bring huge savings from people who are not entitled to it.

David’s diagnoses have always been spot-on, but his solutions have often been wrong.

He lives in fear of deflation while Dublin Bus ticket prices went up by 7% again, despite of the price of oil falling down by nearly 50%.

He is worried about manufacturing moving to China, but he is not worried about Quantitative Easing which depends on the mercy of China buying the US bonds; not only he is not worried, he urges the ECB to make us more dependent on China by printing more soon-to-be-worthless euronotes and eurobonds

“When the local white population try to argue that they are getting squeezed by immigrants or their kids can’t get work because the immigrants are getting the jobs because immigrants are prepared to work longer hours, they are slapped down and labelled racist.”

Though the article would be much more courageous if it admitted that it’s like the local white population of Australia getting squeezed by Irish immigrants ;-)

However, as much as I agree with lots of what David says, I think he misses the point somewhat, a point made by one of the commentators called Deco:

“Irish immigration policies are all about propping up a real estate Ponzi scheme.

Same as everywhere else.

The most important thing in society is Ponzi-economics.”

The reason David misses the point is that he believes in inflation (and even though he exposed in his articles in the past various Ponzi-schemes in the Irish property market, he still believes in the biggest Ponzi-scheme of them all which is money printing) and quotes economists who earned much deserved opprobrium such as Josepf Stiglitz and Paul Krugman, who were wrong on nearly everything they wrote.

For example, in 2002 Stiglitz suggested that the probability of a shock as severe as that anticipated in the new risk-based capital standards for Fannie Mae and Freddie Mac was less than one in five hundred thousand and possibly less than one in three million and that, given the extremely small probability of a default by these institutions the expected monetary costs from exposure to their insolvency would be ‘relatively small’.

Turning to China, Stiglitz claims – on the basis of just a few hours spent interviewing some local officials – that stunning economic growth since 1979 is due to the existence of Township and Village Enterprises (TVEs) which are publicly owned but which simulate market competition owing to their being controlled by lower tiers of government, which is completely at odds with reality: of the 12 million recorded TVEs it turns out that 10.5 million are in fact privately owned or in a position of de facto private ownership – many of them having arisen following the process of rural privatisation that ran from 1979-1989.

The only way to stop it coming to a street near you is to stop muslim immigration.

Bring the poor Hindus from India, the poor Buddhists from Burma, the poor Christians from South America, the poor Pagans and Christians from Sub Saharan Africa, the poor Confucians from China into the country if labour is really really needed. I mean, how many have been killed in Europe by immigrant Buddhists unhappy with the media portrayal of Buddha?

But someone got the great idea in the 1950s and 1960s of not bringing the above in in large numbers, they thought, hmmmmm… maybe we’ll bring in the people who tried to conquer Europe in three attempts over the last 1400 years, you know, the Arabs, the Moors and the Turks, yes, great idea, it doesn’t matter that they take their imperialistic creed very seriously and believe they are supreme and better than Christians and Jews and can invoke their ‘God’ and quote their ‘holy book’ which states there are 3 options, convert to islam; pay tax and live as a second class citizen in your conquered land; death.

We don’t need to repeat those mistakes or squander our resources fighting this menace. We need to engage in asymmetrical warfare and target selectively just like these maniacs have. Targeting innocent people is counter-productive and a complete waste of resources. Smokey I have no problem with crazy people who want to blow themselves up with suicide vests. I’m happy for them if they want to go to paradise a bit early. If they want to use an AK47 to blow their own heads off I won’t stand in their way. My problem is when they force the rest of us to join in their madness. Then it has to stop.