Commercial stamp duty reduction was 'vital'
A cut in stamp duty on commercial property had been expected, with the top rate applicable in the vast majority of transactions now reduced from 9pc to 6pc, said Peter Stapleton, managing director of Lisney Estate Agents.
Property investors had consistently criticised the 9pc rate, saying that it helped drive a flight of capital from Ireland to countries such as the UK, where less onerous stamp duty rates are applicable.
Indeed, Irish investors have stumped up billions of euro buying properties such as office blocks in cities such as London in recent years, spurred primarily by good returns but the lower stamp duty no doubt also played on their minds.
Mr Stapleton believes that the reduction to 6pc was "vital" to shore up the sector in Ireland, which has come under intense pressure, especially this year.
"The impact won't be immediate, but it's an important move," he added.
"What you really need though is confidence and also an acceptance amongst investors that commercial property values have fallen."
He says that the New Year is likely to see a significant increase in the number of commercial properties coming on the market as the sector faces into the traditional year-end revaluation period.
"The sector requires activity, but what's happened over recent years also is that many transactions are done using special purpose vehicles," he said.
Perplexed
"There really needs to be transparency in the market."
Mr Stapleton said he was perplexed by the decision to levy a €200 annual charge on non-primary residences such as holiday homes and rented property.
He said that owners of rented properties already pay an annual levy of €70, and this will bring their annual charge close to €300.
"It's not so long ago that the Government was trying to encourage the provision of private rented accommodation," he said.
