More than €275 million worth of homes were sold in Galway during the first six months of this year, according to official figures from the State Property Price Register.
While the volume of residential properties sold in the first half of the year is up on the first half of 2018, the combined value of sales has dipped slightly.
An analysis of the official figures by the Galway City Tribune shows that in the first six months of the year, there were a total of 1,187 property transactions in Galway City and county, with a combined value of almost €276.9 million.
The volume of sales is up 6% on the 1,116 recorded in the first half of 2018, but the combined value is down around 1% from €279.8m.
For comparison, in 2010 when the Price Register came into effect, there were 427 transactions, with a combined value of €13.9m in the first half of the year – that means that in nine years, the number of transactions has almost trebled (178%), while the value of sales has jumped by 184%.
The biggest property transaction in the first half of this year was 12 Racecourse Hill in Clifden, listed at more than €3.2m, suggesting it was a portfolio of a number of the two and three-bed houses in the estate. A portfolio of 14 homes in the estate sold in 2015 for €750,000.
The next major sale was registered at An Móinéar in Renmore at more than €3.2m – this is a new development of 20 homes behind the Garda HQ which is being run by the housing agency Clúid and would not represent the full open market value of the properties.
In Salthill, a development of eight apartments on Quincentennial Drive, Marine View, sold for €2.2m.
Close to Blackrock in Salthill, 4 Seamount sold for €2m. The large five-bed detached property overlooks Salthill Promenade and had been put on the market with a guide price of €1.45m.
At Cúirt na hAbhainn near the Liosban Retail Park in the city, a portfolio of 13 apartments sold for €1.645m, while 17 Caiseal Riada in Clarenbridge sold for €1.09m.
The cheapest property sale recorded in Galway in the first half of this year was at Tonroe, Oranmore, for €6,000.
The Property Price Register figures show that since 2010, the volume of sales being recorded in Galway – and their total value – decreased, before embarking on a significant upward trend.
In the first half of 2010, there were 427 sales registered in Galway, with a total value of more than €97.4m. The comparative figures the following year were down; the volume of sales was 8374 (down 12%), while the value was €164m (down 16%).
In 2012, the value of sales was down almost 18% to €67,274,569, despite an increase in volume of sales of almost 13% to 422.
A ‘health warning’ comes with the figures in that the Property Price Register is compiled from data which is filed, for Stamp Duty purposes, with the Revenue Commissioners, and there can be delays before a transaction appears on the register. There may also be errors in details being filed during the ‘stamping’ process.
Galway City Ring Road could open in stages
With the required additional information submitted to An Bord Pleanála by Galway County Council, the Chief Executive of the City Council said the decades-long saga of a Ring Road for Galway has crossed another significant hurdle – with the next to be a public oral hearing.
Should planning be approved for the Ring Road, Brendan McGrath said he believed it was possible to have the €650 million project completed by 2025 – and said it would be possible to open it in stages.
“One of the good things about the Ring Road is it can potentially be delivered in phases. It doesn’t have to wait for the entire road to be built for part of it to open,” he said.
Director of Services Ruth McNally said this incremental approach would be important in several projects – not just the Ring Road.
“You might look at that and think it’s very piecemeal – a bit here and a bit there. But we are conscious that the city is very busy and even the smallest intervention is going to cause traffic. That is why we are doing things incrementally in different places,” said Ms McNally.
As reported in the Galway City Tribune last week, Cosain, the Community Road Safety and Information Network, obtained documentation which revealed a predicted 37% increase in CO2 emissions as a result of the new road – a figure from the Government-approved business case for the Ring Road.
However, Mr McGrath refuted this claim, arguing that the shift to electric vehicles would reduce this figure.
“Galway Transportation Strategy, the overarching strategy, is predicated on a principle of climate sustainability. It’s about giving Galway’s streets back to its citizens and getting rid of congestion. Getting people onto high-frequency, sustainable and green public transport.
“Under the Government’s Climate Change Plan, launched a couple of months ago, it envisages there will be 900,000 electric vehicles on Ireland’s roads by the year 2030. That’s the Government’s target, so when the Ring Road is built, most of those will be electric cars,” he claimed.
“The city centre becomes a safe place to walk, to cycle – a place where you will get your bus to wherever you need. Where you don’t have to be car dependent and where the parallel works around reducing flooding, greening the city and the dividend from 2020 – I talk about transforming transport, but’s about transforming the city and how we live in the city,” he continued.
One area where works were already underway was the regeneration of the pedestrian centre, said Ms McNally.
“Phase two of Shop Street is going to be starting at the end of this month. That’s Eason’s to Lynch’s Castle. As well as that, we’ll shortly be starting an automated bollard contract as well. It will be a separate contract,” she said.
Phase two will be completed by early December, with another phase to be complete in quarter one of 2020, said Mr McGrath. The bollards will be completed at the same time, he added.
Plans progress for Traveller-specific housing in Galway City
Plans for new Traveller-specific homes in the city will be progressed before the year’s end.
And Galway City Council is also proposing the upgrade of halting sites in Westside and Headford Road in the coming months.
Elected members will be asked to vote on a Part 8 planning application this Autumn for a new housing scheme in Doughiska. Costing €1.2 million, housing agency Respond is planning to build 23 social homes in total, with four of them earmarked as Traveller-specific.
Separately, a City Council spokesperson said more Traveller housing schemes are in the pipeline.
“Two other proposals for new Traveller schemes are being progressed in discussion with the Department of Housing, Planning and Local Government and I would anticipate that funding approval and planning will be sought towards the end of the year with construction to commence in 2020,” the spokesperson said.
Meanwhile, the Council expects to make progress on the redevelopment of halting sites at Circular Road and Carrowbrowne.
“The planned redevelopment of the Circular Road halting site is also progressing through design stage and again will come before City councillors later this year for planning approval. No funding approval has been sought just yet. Construction will commence in 2020. Replacement of welfare units at Carrowbrowne will commence later this year and will be funded through Council’s own internal receipts,” a spokesperson said.
In relation to Carrowbrowne, the Council has invited tenders to provide 13 new welfare units at the site. “All welfare units must be robust, made of galvanised steel construction for long-life durability and must be secure with a heavy-duty walls, doors and roof and must be vandal proof. The units incorporate a kitchen with a sink, built in presses and drawers, a bathroom with a wash-hand basin, toilet and shower and a service room for plant,” the specifications state. They must also comply with current fire and safety regulations.
The Council said that other standard social housing schemes are being proposed and constructed that will include provision of standard local authority accommodation for Traveller families. Travellers are also being housed through RAS (Rental Accommodation Scheme) and HAP (Housing Assistance Payment) and in emergency accommodation.
The Council was responding to figures obtained by Galway TD Anne Rabbitte (FF) for the Galway City Tribune, which revealed the local authority was not drawing down its allocation of Traveller Accommodation Programmes (TAP) funding.
In 2016, some €40,000 was allocated and there was no draw down; in 2017, some €209,000 was allocated and there was just €95,000 drawn down; and last year some €177,000 was the allocation and none of it has been drawn down.
In response, the Council said it had received funding under TAP in recent years for fire safety works at halting sites and for the completion of extensions to Traveller homes.
“There are numerous other sources of funding for Traveller accommodation including our own revenue budget, principally for maintenance services on existing sites and schemes, and waste management,” the Council said.
The spokesperson added: “In relation to new build schemes, the principle source is through the Department of Housing. The Council have not drawn down any funds over the past number of years as the various schemes now proposed are at planning stage. Single acquisitions of individual homes are also recouped from the Department, including homes for Travellers. Houses acquired for Traveller families are no longer recouped from the Traveller Accommodation Programme fund as was the case in the past.
“The Council did not request specific funding under the Traveller Accommodation Programme for 2019 because we were advised by the Department that fire safety works at halting sites were no longer eligible under that specific fund and because funding for extensions now comes from the general allocation for such works, without reference to whether the house is occupied by a Traveller family or otherwise.”
Galway Traveller Movement said that budget underspend has been an issue every year since 2000, even though it has only received attention recently.
“The fifth Traveller Accommodation Programme will be adopted by Galway City and County Councils later this year. These programmes are five years in duration. The targets within the previous four plans have not been met and there has been continual underspend since the beginning of the first plans in 2000. There has been a lack of action for 20 years and local authorities must take responsibility for their lack of provision,” said Bridget Kelly, Deputy Co-Ordinator of GTM.
She said that two monitoring reports produced by GTM have detailed the “unacceptable lack of progress in meeting the targets” of the Traveller Accommodation Programmes in both Galway City and County.
“Sadly, as a result of this lack of implementation, members of the Traveller community, including a large population of children, are living in substandard conditions. There has not been the political will for these plans to be implemented and as a result the Traveller accommodation crisis continues to worsen. It is disingenuous for Councils to posit the blame onto the Traveller community for the lack of delivery of Traveller accommodation,” added Ms Kelly.
Redirected City Council funds lead to recruitment ban
An unofficial embargo on staff recruitment is underway at Galway City Council – because money earmarked for more front-line workers has been diverted to deal with the local homelessness crisis and housing shortage.
All 18 city councillors voted in favour of taking some €280,000 from City Hall’s revenue budget in 2019, to put towards city homeless services.
Dermot Mahon, acting Director of Services for Housing, told elected members, in response to a query from Cllr Donal Lyons (Ind), that the cutbacks to pay for additional homeless funds would come from the “payroll sector”. He said that there would be a delay in recruiting Council staff that had been earmarked for certain areas.
“No frontline projects or services will be affected,” said Mr Mahon, whose report said the money would be sourced from “saving across the revenue budget”.
He explained that the approved budget for homeless services in the West this year was €5.822m. By July, some 91% of it (€5.2m) had been spent.
“It is envisaged that an additional €4m is required to fund homeless services to the end of 2019,” he said, adding that 90% of this extra spend was recoupable from Government.
The remaining 10% is to be paid by local authorities in the West, and €280,000 was Galway City Council’s share of that.
Cllr Niall McNelis said the City Council was spending €350,000 per month on housing homeless people in city hotels and hostels. “It’s getting worse,” he said.
Cllr Collette Connolly (Ind) said families are being split up by the homeless crisis. “Women are told to go to COPE, the men go to the Fairgreen,” she said. “I know one mother who three weeks after giving birth had to change hotels. Children aren’t within schools’ catchment. That’s the reality of this,” she said.
Cllr Alan Cheevers (FF) said he was aware of one family who have been living in emergency accommodation for three years.
Cllr John Connolly (FF) said the Fine Gael-led Government, which is being kept in power by his party, was completely out of touch on the issue of housing and homelessness; and he urged party leader Micheál Martin to collapse the Coalition and spark a general election.
Cllr Frank Fahy (FG) said the Government had taken steps to rectify the problem, including introducing Rent Pressure Zones. He said many landlords are fleeing the market because it’s not worth their while once mortgages are paid and the taxman takes his share of the profits.