Business
Mixed news for homeowners and potential buyers as prices continue to rise
House prices in Salthill – traditionally one of the most sought-after addresses in Galway – jumped by around one-fifth over the past year, new research has shown.
Despite a lack of building activity, local auctioneers O’Donnellan & Joyce are reporting a renewed confidence in the property market in the city, which is driving prices up.
And they estimate prices could rise by up to 8% over the coming year in Salthill.
And two-bed apartments in Knocknacarra – whose values tumbled during the property crash – have increased in price by a whopping 50%.
According to the Sunday Times Property Price Guide 2015, across the city, prices will increase by between 5-10%. The survey relied on figures provided by O’Donnellan & Joyce and Sherry Fitzgerald.
The average price of a new home in the city now stands at €280,000, while a secondhand four-bed semi in the suburbs sites at €250,000.
As a whole, prices in the city increased by around 10% during 2014.
There was a lot of activity in the city property market – particularly in the second half of the year – because of the December 31 deadline on the Capital Gains Tax exemption scheme. Any property purchased before that date and held for a period of seven years is exempt from CGT.
“The last quarter of the year saw investors looking to beat the deadline for CGT exemptions. Family homes were popular and rents were up,” the report reads.
Three-bed semis saw an increase in value of more than 13% over the past year, from €185,000 to €210,000, and are expected to increase a further 5% to €220,000 by 2016.
Four-bed semis rose 9% in price from €220,000 to €240,000, and are predicted to increase by another 4% to around €250,000.
Knocknacarra
The average price of a new home is €270,000 or €240 for a secondhand property – up 15% during 2014. Agents expect a further 5-10% increase in price during the coming year.
“Three- and four-bed semis and family homes were above the market average. There were signs of renewed activity as the year went on, but the vast majority of movement came from owner-occupiers who were encouraged to sell as prices rose, rather than developers building new homes,” the report reads.
During the past year, O’Malley Construction finished out the Leargán development on the Western Distributor Road, and Burkeway Homes announced the construction of more than 70 new homes on the Upper Ballymoneen Road in a €20 million project.
One-bed apartments increased in price by 25%, from €85,000 to €100,000 and are expected to remain static this year.
Two-bed apartments increased by 50% – from €100,000 to €150,000 – and are set to be valued at around €160,000 by 2016.
Two-bed townhouses – which became increasingly common in larger estates during the construction boom – have seen a 20% increase from €125,000 to €150,000 over the past year and are likely to hit €160,000 by 2016.
Secondhand four-bed semis are currently selling for around €240,000 (up from €220,000) and are likely to remain static this year.
Secondhand four-bed detached homes are up 10% to €330,000, and are likely to increase to €350,000 in the coming year, according to the report.
For more, read this week’s Galway City Tribune.
The new President of Local Ireland, the association representing local news publishers around the country, is Head of Irish Times Regionals Dan Linehan.
Mr Linehan takes over the presidency from Declan McGuire of the Connacht Tribune. His appointment was confirmed at the recent Annual General Meeting of Local Ireland at Bloomfield House Hotel near Mullingar, Westmeath.
Mr Linehan, who has served as Vice President of the organisation for the last two years, said: “The coming years are a very important time for local publishers with many important issues to be addressed, including the implementation of the Future of Media Commission recommendations, defamation reform, the role and support for local publishers in public service reporting and helping publishers develop commercial digital offerings.”
Speaking at the AGM, Mr McGuire acknowledged the work done by the Executive in the past two years under the direction of Executive Director, Bob Hughes, on several projects related to the publishing industry but most especially the successful conclusion of the long-running campaign for the abolition of VAT on newspapers.
He also wished Mr Linehan the very best in his new role as President of the association for the next two years.
Mr Hughes thanked Mr McGuire for his leadership and support during his term of office and said he looked forward to working with Mr Linehan on the key policy priorities for the association, including Government supports, Government advertising, fair remuneration for content from the tech platforms and the reform of the legislation for defamation.
Local Ireland members also elected Seán Mahon, Managing Director of the Southern Star, as Vice President for the next two years.
The shortage of affordable housing is the single biggest impediment in attracting and retaining workers in the West, according to business group Ibec.
At a ‘Regional Insights Series’ meeting in the Galmont Hotel in Galway last week, employers were told that capacity constraints and labour supply are the key challenges facing business growth in the region.
Ibec Head of Regional Policy Helen Leahy said: “There must be greater focus by government on enhancing quality of life issues such as housing and infrastructure which are driving labour shortages in the region.
“Ibec’s vision for the West is to realise its potential to become a globally competitive location. An inadequate supply of affordable housing is now the single largest impediment to attracting and retaining talented workers, without whom business investment and expansions are not possible.
“Labour shortages are a real concern for businesses in the region. People decide where to live and work based on quality of life and access to high quality services and amenities. Industry tends to follow talent, and in this regard, the region needs to have all the building blocks in place as the attraction and retention of world-class talent becomes increasingly competitive on a global level,” said Ms Leahy.
Amongst Ibec’s priorities for the West are:
- Addressing housing and infrastructure challenges
- Transitioning towards a new growth model with Net Zero energy powered by Atlantic offshore wind resources
- Adapting businesses to the new economic realities
- Enhancing capacity and skillsets to achieve sustainable development objectives
- Investment in people and skills
- Creating competitive advantage through digitalisation
- Innovation as a key driver of productivity growth
One in five Galway businesses want to go fully cashless, as the move towards card payments and tapping continues unabated post-Covid.
In all, 22% of Galway businesses would like to be fully cashless, according to a survey carried out by BOI Payment Acceptance (BOIPA), a provider of payment technology solutions, which asked Irish businesses about the current payment landscape as well as business confidence and concerns.
Over one-third (36%) of Galway businesses were unaware there is no contactless limit on mobile wallets – just below the national average – while 54% believe the increase in card over cash transactions has helped them run their business.
Six out of ten Galway businesses expect to grow this year despite the cost-of-living crisis and running costs dominating as key concerns; 62% believe their business will grow over the next twelve months despite global economic uncertainty.
Unsurprisingly cost-of-living increases and running costs were the main concerns the majority of businesses had.
For more, read this week’s Connacht Tribune.
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