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%.
Ends
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 / philip@realestatealliance.ie
For further information on exhibition
contact:
Eimer O’Keefe, Real Estate Alliance
086 8249040 / eimer@realestatealliance.ie
Media information:
Darren Hughes, MediaConsult 086 2937037 /
darren@mediaconsult.ie
