The price of an average three bedroom semi detached house in County Cork has risen by 2.3% to €110,000 in the first three months of 2015, while the same house in Cork City has risen by 3.77% to €275,000 according to a national survey carried out by Real Estate Alliance.
And prices in Cork City have risen by 10% in the last six months, from a level of €250,000 in September 2014.
The Real Estate Alliance Average house index concentrates on Ireland's typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.
It now takes 12 weeks to sell the average house in Bantry, compared to 18 weeks in September 2014, while it takes three weeks to sell a suitable house in Cork city.
“There is a distinct lack of supply in Cork city and surrounding towns, with no construction activity,” said Michael O’Donohue from REA O’Donohue Clark in Cork.
“For this reason, properties that are on the market are attracting a lot of interest. We do not see supply volumes increasing and this will drive prices up even further.
“There are a lot of mortgage approvals already in place but they are struggling to find the right property.
“Although some properties are coming on the market through receivers, they are not generally meeting the demand for the family three-bed semi.”
According to John O’Neil, Bantry, Cork, REA Celtic Properties: “Strong interest from the UK has fuelled the market since the start of 2015 with an increased level of inquiries from abroad throughout the first quarter, thanks mainly to the strength of sterling.
“The local market in Cork is active and discerning, and growing in confidence month-by-month. Local tradespeople have returned to the market and are starting to buy up properties for renovation especially in coastal areas.”
The average semi detached house nationally, including Dublin, now costs €187,153 the latest REA survey has found – a rise of 16.23% over the past 12 months.
However, the average house has risen by just 1.32%, or €7,005, across the country over the December 2014 figure of €184,713 – and the lack of a supply of suitable housing is a feature of the market across the country.
“There is an acute lack of supply of three-bedroom family homes because it is still not financially viable in many areas for builders to construct homes and make a profit,” said REA Chief Executive Philip Farrell.
“In country and commuter areas where the average value is below €200,000, supply of new homes will remain reduced even if lands become available due to profitability issues for developers who need houses to sell for above that mark.
“This is caused by the current high cost of construction which is exacerbated by the significant taxes which are payable on a new home (28% of the cost) and the recently increased building regulations.“
And while Dublin led the way in the market recovery last year, prices have fallen by -0.28% in Dublin city and county in the opening quarter, where the average semi-d now stands at €352,500.
In a complete shift in the market, the biggest increases over the last year have come from what is termed Tier Three – the country areas, outside of the pale and the major cities, which have gone up by 17.28%, ahead of Dublin city’s 17.18%, and 14.82% when Dublin city and county are combined.
Over the past six months, property price rise rates in the rest of the country (5.1%) have more than trebled that of the capital (1.55%).
In the opening quarter this year, there have been significant increases in Carlow (7.50%) Kilkenny City (7.41%), Waterford City (5%) and Wexford (8%), while the rise in sterling has seen a jump in property prices in Bundoran in Donegal of 7.69%.
Available for interview:
Mick O’Donohue, REA O’Donohue Clark, 087 252 7485
John O’Neill, REA Celtic Properties, 087 2357288
Philip Farrell, CEO Real Estate Alliance
086 250 3515 / email@example.com
For further information on exhibition contact:
Eimer O’Keefe, Real Estate Alliance
086 8249040 / firstname.lastname@example.org
Darren Hughes, MediaConsult 086 2937037 / email@example.com