News Archives - Page 4 of 603 - Pat Carroll PCCO - Chartered Accountants & Tax Advisors

New figures from the Central Statistics Office show that residential property prices grew by 9.6% in the year to July – their highest growth rate in 21 months.

The CSO said the national residential property price index is now 12% above the April 2007 peak of the country’s last property boom.

Today’s CSO figures show that property prices in Dublin were up by 10.3%, with prices outside Dublin rising by 9.1%.

House prices in Dublin grew by 10.9% while apartment prices increased by 8% in the 12 months to July.

The CSO noted that the highest house price growth in Dublin was in South Dublin at 12.1% while Dún Laoghaire-Rathdown saw a rise of 8.3%.

Outside Dublin, house prices increased by 9%, with apartment prices up by 10.6%.

The region outside of Dublin with the biggest hike in house prices was the Mid-West (Clare, Limerick, and Tipperary) at 13.4%, while at the other end of the scale, the South-East (Carlow, Kilkenny, Waterford, and Wexford) saw a 6.1% rise.

Today’s CSO figures show that the median or mid-point price of a home stood at €340,000 in the 12 months to July.

The lowest median price paid for a home was €171,000 in Longford, while the highest was €630,000 in Dún Laoghaire-Rathdown.

Meanwhile, the most expensive Eircode area in July was D06 ‘Dublin 6’ with a median price of €750,000, while F45 ‘Castlerea’ had the least expensive price of €140,000.

The CSO said today that Dublin residential property prices are 0.6% higher than their February 2007 peak, while residential property prices in the rest of the country are 13.3% higher than their May 2007 peak.

Today’s CSO figures also reveal that a total of 4,723 dwelling purchases were filed with Revenue in July, an increase of 13.2% on the 4,174 purchases filed the same time last year.

The total value of transactions filed in July was €1.9 billion.

Existing homes accounted for 75.8% of the dwelling purchases filed in July, an increase of 4.3% compared with the same time last year, with the balance of 24.2% new dwellings, a jump of 53.8% compared with the same time last year.

Article Source – Annual house price growth accelerates to 9.6% in July – CSO – RTE

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The euro zone’s current account surplus shrunk in July on a lower trade surplus and a drop in primary income, which includes the flow of profits, wages, interest income and dividends into and out of the bloc, European Central Bank data showed today.

The seasonally adjusted current account surplus fell to €39.6 billion in July from €50.5 billion a month earlier.

Based on unadjusted figures, the surplus fell to €48 billion from €52.4 billion.

In the 12 months to July, the bloc’s surplus rose to 2.6% of GDP from 0.5% in the preceding 12 months.

Article Source – Euro zone current surplus shrinks in July – RTE

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The US Federal Reserve has cut interest rates by half of a percentage point, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market.

“The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” policymakers on the US central bank’s rate-setting committee said in their latest statement, which drew dissent from Governor Michelle Bowman who favoured only a quarter-percentage-point cut.

Policymakers see the Fed’s benchmark rate falling by another half of a percentage point by the end of this year, another full percentage point in 2025, and by a final half of a percentage point in 2026 to end in a 2.75%-3% range.

The endpoint reflects a slight upgrade, from 2.8% to 2.9%, in the longer-run federal funds rate, considered a “neutral” stance that neither encourages nor discourages economic activity.

Even though inflation “remains somewhat elevated,” the Fed statement said policymakers chose to cut the overnight rate to the 4.75%-5.00% range “in light of the progress on inflation and the balance of risks.”

It “would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” with attention to “both sides of its dual mandate” for stable prices and maximum employment.

The Federal Reserve’s policy meeting this week was its last before voters go to the polls in what is expected to be a close US presidential election on 5 November.

The size of the initial cut will likely raise questions about the Fed’s strategy, and whether policymakers were merely trying to account for the fast decline in inflation since last year, or address concerns among some officials that the US job market may be weakening faster than desired or needed to ensure inflation fully returns to the Fed’s 2% target.

It is currently about half a percentage point above that, and the new economic projections now show the annual rate of increase in the personal consumption expenditures price index falling to 2.3% by the end of this year and down to 2.1% by the end of 2025.

The unemployment rate is seen ending this year at 4.4%, higher than the current 4.2%, and remaining there through 2025.

Economic growth is seen at 2.1% through 2024 and 2% next year, the same as in the last round of projections issued in June.

The Fed had held its policy rate in the 5.25%-5.50% range since July of 2023 as inflation fell from a 40-year high to a level that is now approaching the central bank’s target.

Article Source – US Fed cuts interest rates by half a percentage point – RTE

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Dealing with the pent-up demand for housing and continued growth in the population will require building 52,000 homes a year over 25 years, the Central Bank has forecast.

It has also calculated that if the Government wanted to reduce the deficit of homes over a decade and meet demand it would need to build almost 70,000 units per annum.

The bank says the shortfall in homes, which has resulted in thousands of adults living with parents or sharing rental accommodation, has built up over a decade during which house building lagged behind demand.

Last year there were 33,000 homes completed and the Government has said more will be built this year.

But the Central Bank has predicted there will only be 32,000 completed in 2024 before numbers begin to increase next year and the following year.

The State significantly increased investment in housing from €1bn to €6.5bn a year, over the past decade, according to the Central Bank.

But it said that in order to catch up with demand there needs to be improvements in the planning system, an increase in the provision of serviced land and greater incentives for private industry to invest in development.

It also said due to the scars left on the building industry by the financial crash, there has been an underinvestment in machinery and equipment.

It said that construction was over-relying on small firms which do not have the economies of scale of bigger companies.

The Central Bank’s director of economics and statistics Robert Kelly said: “We have calculated the significant economic costs of policy inaction prolonging the imbalance between housing demand and supply.”

He added: “These will result in a higher cost of living, and in turn, a higher cost of doing business in Ireland, ultimately damaging our global competitiveness and the sustainable growth in living standards for the people of Ireland in the medium-term.”

In tandem with publishing a report on housing, the Central Bank has also updated its economic forecasts.

They showed that domestic economy will grow by 2.4% this year and 3% in 2025.

The number of people in jobs will rise by 3.4% this year and unemployment will remain subdued at 4.3%.

Employment in the first half of 2024 increased by 47,800 with 47% of the rise accounted for by foreign nationals.

Article Source – 52,000 homes per year needed over 25 years – Central Bank – RTE

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A bill that seeks to abolish age-based sub-minimum pay rates for younger workers will be discussed today by the Oireachtas Committee on Enterprise, Trade and Employment.

Current legislation allows for lower or sub-minimum rates for people aged under 20.

The minimum wage for those aged 19 is 90% of the prevailing rate, for those aged 18 it is 80% and for those aged 17 and under it is 70%.

The minimum wage stands at €12.70 per hour, therefore the current sub-minimum wage rate for workers aged 19 is €11.43, for workers aged 18 is €10.16 and for those aged under 18 is €8.89.

In June, the Low Pay Commission recommended the abolition of the sub-minimum rates and the Department of Enterprise has commissioned an economic impact assessment on the issue.

Trade unions have welcomed calls for the scrapping of sub-minimum wage rates.

Business groups, however, have pointed out that employers in the retail and hospitality sector are not allowed to employ young people to sell age-restricted products such as alcohol, tobacco and vaping products.

Groups add that employers would be much less inclined to hire young people at the same rate as adults when they cannot carry out the same functions or have the same availability.

The Oireachtas Enterprise Committee will today hear from officials from the Department of Enterprise, Trade and Employment.

“The department is undertaking an economic impact assessment of the Low Pay Commission’s recommendations to abolish sub-minimum youth rates,” said Committee Cathaoirleach Maurice Quinlivan.

“It is also considering the requirements of the EU Directive on Adequate Minimum Wages which is due to be transposed into Irish legislation before the end of the year.”

“The directive aims to ensure that workers across the EU are protected by adequate minimum wages. The directive does not prohibit the use of sub-minimum rates but requires Member States to ensure the objective justification of these rates,” Mr Quinlivan said.

Article Source – Committee to discuss scrapping age-based minimum pay rates – RTE

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The Tánaiste has said the energy credit which will be announced in the budget will be paid to households before the end of the year.

With Budget 2025 now less than two weeks away, Micheál Martin is expected to hold further discussions on its overall shape with the Government party leaders tonight.

However, he said the specifics of the budget are still being worked out and could not say if one or two energy credits might be paid to households as part of the budget.

“I think the credits that will be paid will be this year though,” the Tánaiste told RTÉ’s Morning Ireland.

The Tánaiste has said the cost of living is still high on the agenda for Budget 2025 as people are continuing to feel the pressure due to high inflation.

Cost of living, housing and health will be key priorities for the budget, Mr Martin said.

Inflation may have reduced, but prices are still high, he added.

He refused to be drawn on whether a second-tier child benefit might be introduced and pointed to a number of measures aimed at lowering costs for parents, such as the extensions of the free schoolbook scheme.

The Tánaiste accepted the point that cohorts of the population are not where they should be, but flatly denied suggestions that Ireland looks like a poor country in many aspects of society.

He told RTÉ’s Morning Ireland: “I accept we have an awful lot more to do in certain areas.

“But I do not accept the narrative of a failed state, which is the narrative of Sinn Féin, People Before Profit, because I think their model, they would disrupt the economic model that has been overall beneficial to this country, in my view.”

Day two of Fianna Fáil think-in

He was speaking as Fianna Fáil holds the second day of its policy think-in at Killiney Castle, Co Dublin, ahead of the return of the Dáil tomorrow.

Discussions at the think-in were set to focus on the budget, the cost of living, housing, health, education and childcare.

Addressing health, Mr Martin said waiting lists have been dramatically reduced while a national cancer strategy has seen survivor rates increase “exponentially” in the last 20 years.

“We’re now at the top rung of the EU table in terms of life expectancy,” he added.

In addition, the Minister for Health Stephen Donnelly has brought in a number of initiatives to improve women’s health, Mr Martin said.

He acknowledged that more needs to be done in the area of special education and said the system for progressing disability has not worked for families.

This is why Fianna Fáil wants multi-disciplinary teams to be put into schools, starting with special schools, he said.

Mr Martin said the Apple money may come into the State coffers before next March, but it would not feature in Budget 2025.

However, aside from Apple, there will also be a significant surplus this year, he added.

The Tánaiste said the Apple money presents opportunities to future proof projects such as housing, water and expansion of the national grid.

He said the Government needs to plan ahead and give confidence to industry and the public that they can deliver on projects.

Mr Martin said: “The Apple money gives us additional capacity to say to people, if we ringfence it for housing, or certain proportion of it to housing, we can future proof house spending for the next five years on the capital side.”

Fianna Fáil ‘did right thing by the country’ – Martin

Mr Martin said Fianna Fáil did the right thing by the country when it entered the confidence and supply deal.

However, it may not have been the right thing by the party, he said.

He said: “Confidence and supply was a positive thing for the country in so far as Fianna Fáil contributed to a government at a time when Brexit happened, and Brexit was an existential threat at the time to our trade and economy. We did the right thing by the country.”

He said that housing targets will probably be revised before the end of the year.

However, targets are not a ceiling, the Tánaiste said.

Mr Martin pointed out that last year’s target, set by Housing for All, exceeded targets.

He also defended the delivery of social housing. 12,000 homes were delivered last year, he said.

“We’ve built more social houses in the last two to four years than we did for the previous decade,” he added.

Mr Martin said that forty thousand homes are projected to be completed by the end of this year.

Article Source – Budget 2025 energy credit to be paid by end of year – Tánaiste – RTE

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The European Central Bank should keep cutting interest rates gradually, its chief economist said today, after policymakers reduced borrowing costs last week for the second time this year.

“A gradual approach to dialling back restrictiveness will be appropriate if the incoming data are in line with the baseline projection,” Philip Lane said in a speech in Luxembourg.

But he stressed policymakers should keep an open mind about “the speed of adjustment”, and it would depend on how fast inflation drops and the state of the eurozone economy.

“These considerations reinforce the value of a meeting-by-meeting and data-dependent approach that maintains… flexibility for future rate decisions,” he said.

The bank for the 20 countries that use the euro cut its key deposit rate by a quarter point to 3.5% on Thursday.

The ECB had hiked rates a record pace from mid-2022 to tame surging consumer prices but has started easing the pressure as inflation drifts back down towards its two-percent target.

There have also been signs the euro zone economy is weakening, boosting calls for cuts.

Professor Lane said recent data had been in line with the ECB’s expectations, and the Frankfurt-based institution foresaw “a demand-led economic recovery”.

This had bolstered confidence in moving forward with last week’s cut.

Most economists expect the ECB to hold rates at its next meeting in October before delivering another cut in December.

Inflation in the euro zone – which peaked at over 10% in late 2022 – cooled to 2.2% in August, its lowest level in more than three years.

Article Source – Euro zone rates should be cut gradually – ECB economist – RTE

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New figures from Kantar today show that take-home grocery sales increased by 5.4% in the four weeks to September 1 as Irish households prepared for the new school year.

Shopping frequency increased by 0.7% in September, along with an increase in average prices of 2.4%, while volumes per trip were also up slightly by 0.4% after six months of decline.

Today’s Kantar figures show that despite inflation rising to 2.8% over the last 12 weeks to September 1 compared to the same time last year, it is still the lowest inflation level since March 2022 and is down 8.5 percentage points from September 2023.

Emer Healy, Business Development Director at Kantar, said that shoppers continue to take advantage of promotional offers from retailers with spending on promotions up 9.6% compared to this time last year.

Shoppers were also drawn to retailers’ own label ranges in the latest period under review. Sales of own label products performed strongly, up 4.5% year-on-year, holding a value share of 47%, with shoppers spending an additional €66.8m on these ranges.

Emer Healy noted that premium ranges also continued to do well, with shoppers spending an additional €14.2m on these lines, an increase of 10.2% on the same time last year.

“However, with major retailers heavily promoting brands in their recent advertising campaigns, branded goods outpaced total market growth, increasing by 8.4%, with shoppers spending an additional €121m compared to last year,” she stated.

Over 60% of branded products were purchased on some form of promotion, a 9.8% increase on the same time last year.

Kantar said that as the back-to-school season approached in late August and early September, parents starting preparing for the return of school routines, including packed lunches.

This led to additional €2.1m being spent on biscuits, €1.3m on cheese and €460,000 on bread.

Shoppers also turned to quick meal options, resulting in an extra €2.6m spent on chilled convenience foods compared to August.

Today’s figures show show that online sales were up 10.7% as shoppers spent an extra €18.2m year-on-year.

Meanwhile, Dunnes held a 23.6% market share with growth of 9.4% year-on-year in the latest figures from Kantar.

Dunnes had the strongest growth in trips amongst all the retailers, up 12% year-on-year and contributing an additional €83.6m to the chain’s overall performance.

Tesco holds a 23.5% of the market, up 10.4% year-on-year, with its growth mainly coming from more frequent trips, which contributed an additional €32.9m to its overall performance.

Meanwhile, SuperValu holds a 19.9% share of the market with growth of 2.5% with its shoppers making the most trips in-store when compared to all retailers – 21.8 trips on average, an increase of 2.5% year-on-year.

Lidl holds 13.7% share with growth of 6.9% year on year. More frequent trips in-store, alongside new shoppers, contributed an additional combined €27m to its overall performance.

And Aldi holds an 11.8% market share with growth of 1% year on year, with more frequent trips contributing an additional €9.4m to its overall performance.

Article Source – Monthly grocery sales rise by 5.4% in latest four week period – RTE

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The national commercial vacancy rate hit a new high of 14.4% in June, new data shows.

30,246 commercial units were classified as vacant across the country, according to the latest GeoDirectory report.

The analysis, prepared by EY, found that the commercial vacancy rate increased in 14 out of 26 counties surveyed.

“While the national commercial vacancy rate has reached a new high of 14.4% in the second quarter of 2024, the economic outlook remains positive and with inflation falling and a recent cut in ECB interest rates, there is a possibility that commercial vacancy rates will recede from its current peak,” said Annette Hughes, Director at EY Economic Advisory.

The data shows that the highest commercial vacancy rates continue to be found in the west of the country with Sligo, at 20.5%, recording the highest proportion of vacant commercial units between April and June.

Donegal at 19.4%, Galway at 18.5%, Limerick at 17.5% and Leitrim at 17.% completed the top five counties with the highest commercial vacancy rates.

Meath, at 9.8%, was the county with the lowest commercial vacancy rate in the country and the only county in the State with a vacancy rate below 10%.

Wexford at 10.6%, Cork at 12.4%, Kerry at 12.5% and Cavan at 12.5% were the counties to record the next lowest commercial vacancy rates.

In Dublin, the commercial vacancy rate was 13.3% in the second quarter of the year, an increase of 0.2% on the previous year.

Of the 80 main towns and urban areas surveyed by GeoDirectory nationally, Ballybofey, Co Donegal registered the highest commercial vacancy rate at 33.6%, followed by Edgeworthstown, Co Longford at 30.2% and Shannon, Co Clare at 29.8%.

At the other end of the scale, Greystones, Co Wicklow at 5.6%, and Carrigaline, Co Cork at 7.2% were the towns with the lowest vacancy rates.

The Accommodation and Food Services sector accounts for 14.4% of all commercial units in the state, with the highest proportion located in Kerry at 24% and Clare at 20.5%.

“The national commercial vacancy rate has increased steadily in recent years, and at 14.4%, is now at the highest level since GeoDirectory began tracking commercial vacancy data in 2013,” said Dara Keogh, CEO of GeoDirectory.

“Changing consumer habits, the growth of online commerce, remote working and rising business costs have all contributed to a realignment of the commercial property market.

“The reality is that some of these commercial units may never now return to the commercial stock, requiring action to provide opportunities for targeted regeneration projects and the repurposing of long-term vacant buildings,” he added.

Article Source – Commercial vacancy rate hits new high of 14.4% – RTE

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A developer has told a conference there should be an exemption from the Government’s planned zone land tax for companies that are working on developing sites.

The Cabinet is introducing a 3% annual levy to discourage speculators from hoarding land that can be used for housing.

Senior managing director of US group Hines Brian Moran said that his company was delayed for four years before it could develop its project at Cherrywood in Dublin.

He said when early work is under way on a site, including getting planning, providing a sewage system, putting in parks and roads, developers would be taxed before they would submit a commencement notice to start building.

“You are going to buy the land, you are doing to do all the work to enable it and you are going to be taxed as you are doing it, I think there is a genuine case for an exemption for a working developer.”

Mr Moran was speaking at the Dublin Economics Workshop annual policy conference, which also heard that Ireland will need more development finance to deliver 50,000 homes a year.

Aileen Gleeson, a senior official at the Department of Finance, said a target of building 50,000 homes would require €20bn of development finance but last year there was only €13bn.

She said to attract institutional capital a stable policy environment would provide greater certainty to investors.

She added that returns for investors dropped the longer their projects were delayed by the planning system.

Ms Gleeson said shovel-ready projects could deliver a 10% return on investment but a site that was subject to a two-year delay only delivered a 5% return.

She said in Ireland there was a “real risk” of delays due to judicial reviews of planning permissions.

Ms Gleeson told the workshop’s annual policy conference there was “positivity” from investors about the Government’s Planning and Development Bill, which is due to be passed by the Oireachtas.

Ms Gleeson said certainty about planning timelines could have a “huge impact” for investors.

Article Source – Call for tax exemption for companies developing sites – RTE

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