Business
Stats show two-tier market
Asking prices for three-bed semi-detached homes in Galway City rose by almost 8% over the past year, while similar properties in the county dropped by 12%, according to a new report.
And the undersupply of housing in the city has been recorded as the “most pressing” concern for those in the market for a new home.
The figures from Daft.ie show that overall, asking prices (as opposed to eventual selling prices) are up 3% in Galway City, and are now averaging €170,000.
“In Galway City, prices in early 2014 were 3% higher than a year previously, compared to a fall of 11% seen a year ago. The average house price is now €165,000, 5% above its trough last year.
“In the rest of Galway, prices in early 2014 were 4% lower than a year previously, compared to a fall of 16% seen a year ago. The average house price is now €131,000, 59% below peak levels,” the report reads.
The report shows that the average asking price for a one-bed apartment in Galway City is €78,000 (up 5.6% over the last twelve months); a two-bed terraced house up 4.6% to €87,000; a three-bed semi is up 7.7% to an average of €140,000 and the asking price for a four-bed bungalow is up 11.7% to €242,000.
There was a drop in the asking prices for a five-bed detached house of 3.2%, to an average of €288,000.
In the county, average asking prices for one-bed apartments are down almost 18% to €46,000; a two-bed terraced house is down 8.5% to €53,000; a three-bed semi is €76,000 (down 12%); a four-bed bungalow is €159,000 (down 2.2%), while a five-bed detached house is asking an average of €176,000 (down 4.7%).
Ronan Lyons, economist with Daft.ie said that lack of restrictions on lending could fuel another bubble.
“Ultimately, expectations may be the spark, but credit is the fuel. Currently, the survey indicates that people are looking to buy a house worth about four times their income (4.5 times in Dublin). This is in line with prudential lending.
“But currently, no regulation exists in relation to lending standards. An obvious step for the Financial Regulator would be to introduce a minimum deposit (i.e. a maximum loan-to-value).
“Experiences from other countries suggest that this simple tool can work wonders in stemming demand that is fuelled by expectations about prices rising in the future.
“For the first time since 2007, the average asking price outside Dublin rose on a quarterly basis. This may the first indications that a better match is being found between demand – which will be boosted by the fall in unemployment, and supply, which has eased back considerably in the last two years,” said Mr Lyons.
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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