A report released this week shows that asking prices for houses in Dublin city are now 62 percent below their peak in 2007.Google Images

It looks as if the chickens are coming home to roost in overvalued properties all over Ireland.

An Irish judge has revealed that property values in Ireland have plunged by 80 percent in some areas.

Justice Peter Kelly says commercial property has taken a major hit in Ireland with many properties falling by 70 to 80 per cent.

He said he is dealing with such cases on “a daily basis.”

Kelly, who manages the so-called big-business section of the High Court, spoke out Monday after examining a list involving some 70 business properties.

Many of the cases involve the failure to repay loans made at the dizzying heights of the property boom.

In layman's terms, it means that people were able to borrow ridiculous amounts of money based on the alleged value of another property they owned.

One case in Kelly's court involves the Irish building society, the EBS, seeking repayment of a €19.5 million loan made in June 2007 which had been borrowed against land valued at €6 million in Kilcock, Co Kildare.

Kelly made his comments Monday while dealing with an application to the  court from ACCBAnk which wanted to take action against five men from Cork and Kerry.

The bank is looking for some  €5.5 million over alleged unpaid loans made in 2005 to a group operating as Westhatch Ltd, Woodford Bar, Paul Street, Cork.

The judge said it appeared as if property values had dropped 70-80 per cent.

“I see that every day of the week here,” he said.