The commercial rate in Nenagh is an “obstacle” to leasing premises, a property briefing in the town was told by a local auctioneer.
“Commercial rates account for about 30 to 40 per cent of annual rent,” William Talbot of Sherry FitzGerald Talbot told the briefing in the Abbey Court Hotel which was attended by bankers, solicitors, and those involved in the property market.
“It is standing in the way of leasing properties more so than for the sale of commercial premises,” he said.
“The commercial market is going to get stronger but commercial rates are a problem,” said Mr Talbot.
He told the briefing that good quality retail space was difficult to come by as most business people were focusing their attention on certain areas in the town centre. However, there is a good supply of office space.
Mr Talbot said that the amalgamation of North and South Tipperary county councils into one body following the local elections would bring benefits to Nenagh as the town would now be perceived as the capital of Tipperary due to the fact that the county manager would be based in the town.
“Clonmel may have lost out,” he said, describing Nenagh as an “excellent business town” that was in a good position to attract top industry to it from home and abroad.
In relation to the general housing market, he said Nenagh was doing well and was seen as a strong provincial town.
Sherry FitzGerald Talbot has 20 per cent of the market in North Tipperary and has 114 properties on its books, with 273 viewings so far this year.
In 2012, the company sold 60 houses, in 2013 they sold 60 and in the first five months of 2014 sold 40. Mr Talbot estimated that by the end of the year they will have sold 90 properties. This year, 60 per cent of purchasers were cash buyers, he revealed, with properties below E200,000 reaching their asking price and those above that figure getting 90 per cent of it. There were now seeing a situation where there were multiple under bidders for properties. There was also a good mix of buyers, from first homes to second homes and holiday homes.
“With property becoming more affordable due to low interest rates and increases in rents, it is making more sense now to buy rather than rent,” said Mr Talbot.
However, he said that there was shortage of good quality rental accommodation in Nenagh coupled with a shortage of three-bedroom semi-detached homes. “When a house hits the market in certain areas, we will have under bidders,” he said.