Dublin nets half of property sales

DUBLIN property sales account for 43% of all property transactions by value in Ireland, data from the Department of Finance confirms.

According to the Minister for Finance Michael Noonan €198.6 million was collected in stamp duty last year across the country, with 43.4% or €86.2m generated in Dublin.

The €198m compares to over €3 billion that was collected in stamp duty in 2006 at the height of the property boom.

The figures for 2010 show that Cork came second to Dublin, generating 10.5% or €20.86m in the property tax.

The next most buoyant property market in the country was based in Galway where €9.34m or 4.7% was raised.

The figures show that counties adjoining Dublin generated higher levels than counties containing regional capitals such as Limerick and Waterford.

The figures show that Kildare generated €9m or 4.16% in stamp duty, while Wicklow generated €7.75m or 3.39% in 2010.

This compares to Limerick generating €5.96m or 3%, along with Waterford at €3.38m or 1.7%.

In response to a Dáil question from Independent TD Michael Healy-Rae, Mr Noonan also outlined a number of counties that failed to generate €1m in stamp duty last year illustrating the depressed state of those markets.

Mr Noonan confirmed that Co Leitrim and Co Longford each generated just €600,000 in stamp duty last year.

Chief economist with Sherry Fitzgerald Marion Finnegan said yesterday that while Dublin had 30% of the property stock, it achieved 43% of the property sales last year through prices dropping quicker there than around the country.

However, Ms Finnegan expected that the regional counties will account for a greater chunk of sales this year, adding that Government receipts from stamp duty are up this year on 2010.

She said: “The figures for 2010 do show that there is some level of activity out there.”

Ms Finnegan said that the split would be one third residential and two thirds commercial in how the stamp duty would be broken down.

She said: “During 2006, the Government would have taken in €100m per week in stamp duty.”

Ms Finnegan said that with current uncertainty in the general economy, the pace of deflation in house prices has picked up once again.