LACK OF SUPPLY IN DUBLIN PUSHING HOUSE PRICES HIGHER - There was more evidence of the two tier housing market this morning from the latest Myhome.ie price barometer. Over the period from July to September it shows a rise of almost 1% in asking prices in Dublin. Nationally, though, prices still falling. The decline in the quarter was 1.4%. Over the past 12 months asking prices down 7.8% which is the lowest annual rate of decline in six years.
Caroline Kelleher of DKM consultants, which prepared the report, said a lack of supply in Dublin is one of the reasons behind the rise. The current stock levels in Dublin are only half of what is needed for a normal functioning market, she states. Another factor is the delay by the banks in dealing with mortgage arrears and repossessions.
Ms Kelleher says the banks are coming under more pressure to deal with arrears and if a faction of the houses that are in danger of being repossessed come on the market, the would have a downward effect on prices. However, she says that Dublin prices will not be affected too greatly, as the city will remain the main source of housing demand. The high level of cash purchases in the housing market is also not sustainable, Ms Kelleher states.
MORNING BRIEFS - Exploration company Providence says a dozen companies have expressed interest in taking a stake in its Barryroe oil field off the coast of Cork. It expects to complete what is known in the industry as a farm-out, where a larger oil company invests following a discovery by a smaller player, in the coming months. Half year results from Providence published this morning showed a profit of €1.3m but that was due to a €6m euro gain from the sale of assets in the UK.
*** Full year results from the food company Aryzta show it surpassed €3 billion in revenue for the first time over the 12 months to the end of July. Earnings before charging loan interest, tax and depreciation, came in just over €400m - an 8.5% increase. Aryzta was formed by the merger of Irish company IAWS - a stock market listed company formed by the co-op of the same name - and Swiss company Hiestand. Its bakery products include the well-known Cuisine de France brand. In those five years it has more than doubled its earnings and has almost doubled revenue.
*** Google paid tax of €17m last year according to accounts filed with the Companies Records Office here over the weekend. That is double the 2011 figure. Google made a pre-tax profit of €154m last year, up from €24m in 2011.
The accounts show the company generated revenue of €15 billion through its Irish operations. Much of that is due to advertising sales made across Europe. Google charged administrative expenses of almost €11 billion to its Irish operations, though, including royalty payments transferred to other Google subsidiaries.