House prices in Cork soar to near Celtic Tiger levels

House prices in Cork soar to near Celtic Tiger levels

HOUSE prices in Cork have climbed by more than 10% in the last twelve months.

Asking prices for homes in the city are now 56.5% higher than their lowest point in 2013.

According to today's house price report, the asking price for a home in Cork city has now hit €257,007, making it one of the most expensive places to buy in the country.

Prices in county areas are increasing at a rapid pace too, but remain some way behind the city at an average price of €196,175, a 9.7% increase in the last twelve months.

House prices surge 4.3% in the first three months of 2017.
House prices surge 4.3% in the first three months of 2017.

The report makes for stark reading for house-hunters, with the market nationally showing little sign of slowing down.

In fact, the year-on-year change in the average list price nationally was 9.4%, the highest it has been since mid-2015.

The increase can be felt across the market in Cork, with one-bed apartments in the city averaging €99,000.

Two-bed terraces have increased by 19.9% in the city, with asking prices now an average of €142,000, while three-bed semi-detached properties are now in region of €220,000.

Similar trends can be spotted in the county, with apartments (up 8.6% to €69,000), two-bed terraced houses (up 18.8% to €92,000) and three bed semi-detached homes (up 13.6% to €135,000) all seeing significant spikes in the last twelve months.

Government intervention in the market is driving this resurgence in pricing, according to economist Ronan Lyons, who compiled the report for

Mr Lyons said that the introduction of the help-to-buy scheme late last year has made it easier for first-time buyers to bid higher prices, causing the average price to jump.

He said, "It is unfortunate that the primary focus of policy efforts late last year, when it came to the housing market, was to further stimulate demand and prices, rather than supply and quantities."

Mr Lyons said that the country needs somewhere in the region of 40,000 to 50,000 new homes per annum, but that recent years the number of new homes has been just one-quarter of that.

"It is incumbent on policymakers to focus their efforts on increasing housing supply where it is needed," he added, noting that demand is concentrated around Ireland's cities.

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