Cork house prices set to rise further in 2019

Cork house prices set to rise further in 2019

The price of a three-bed semi detached house in Cork city rose by 2.4% to €317,500 in 2018. Photo: Sam Boal/RollingNews.ie

The price of the average three-bed semi in Cork City is expected to rise by 4% in the next 12 months, according to a survey carried out by Real Estate Alliance.

Prices in the city rose by 2.4% to €317,500 in 2018 – with no change between September and December.

The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the second-hand property market in towns and cities countrywide.

“We see steady interest in three-bed semis, but there is still limited supply of this type of property in mature, popular residential areas,” said Michael O’Donoghue of REA O’Donoghue and Clarke in Cork City.

“Central Bank lending regulations are also having an effect and keeping a lid on prices.” Michael O’Connor of REA O’Connor Murphy said that indicators suggest a stability in the Cork market, with prices largely unchanged in quarter four of 2018.

“We envisage a normal market continuing into 2018 with Cork firmly ahead of the rest of Munster in terms of average house prices,” he said.

REA Spokesperson, Barry McDonald said that of the major cities outside Dublin, Cork has experienced the slowest growth of the four, up 2.4% annually, with an average price of €317,500 remaining static in the past three months and agents reporting a limited supply of three-bed semis in mature and popular residential areas.

The average semi-detached house nationally now costs €236,287, the Q4 REA Average House Price Survey has found – a rise of 0.6% on the Q3 2018 figure of €234,284.

Overall, the average house price across the country rose by 4.6% in 2018 – a decrease on the 5.4% recorded to September and indicating that the market is continuing to steady after an 11.3% overall rise in 2017.

Growth in the commuter counties also slowed to 0.38% in the last three months – an annual rise of 4.18% – with the average house now selling for €249,472.

This is an annual rise of €10,000 and growth of €2,000 in the last three months.

The country’s major cities outside Dublin recorded the biggest rise of the quarter at 1.25%, an annual increase of 5.81%, with an average three-bed semi costing €252,500.

The biggest urban rise was seen in Galway City, where selling prices rose by 2.7% in the quarter to €282,500 – a yearly increase of 9.7%.

The highest annual increases (7.7%) were once again seen in the rest of the country’s towns which rose in selling price by an average of €10,000 in 2018 and which experienced a 0.85% rise in Q4 to an average of €157,717.

“In these areas, you largely have the perfect storm of affordability within the 10% deposit range, and no new homes as it is still uneconomical to build in many places,” said McDonald.

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