Sunday 4 December 2016

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Cork County East: Cork Co East up 12pc as supply dries up

Published 23/01/2016 | 02:30

1 Carlisle Gardens, Whitegate, Co. Cork. Sold for €230,000.
1 Carlisle Gardens, Whitegate, Co. Cork. Sold for €230,000.

The biggest problem for Cork County East is now lack of supply and the resulting steady rise in prices means there may be some good news on the development front at last.

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"We haven't seen any building activity which is having a detrimental affect on the market. The sounding from the builders' side is that it's still not quite feasible. It was a very busy year for first-time buyers in the area," says Shane Russell of Michael Russell & Co, whose agency estimates a very strong 10pc increase in prices since this time last year and is forecasting another 8pc rise in 2017.

There's a notable increase in developers getting planning applications ready so that has to be a positive sign for the market," hopes Russell.

"Everything has filled up in the last 12-18 months. We don't even have any unfinished sites in the area where builders could move back in and finish them off."

The new Central Bank lending restrictions requiring buyers to have a 20pc deposit for properties over €220,000, have not had much of an impact in Cork Co East. Most first-time buyers would be well under the threshold of €220,000 in the area, and there are still semi-ds on the market for people trading up that come in below the mark.

UK buyers continue to move in the East Cork market according to Russell, but they're not the only foreign based buyers to rummage. "Over the last 12 months we've noticed Irish buyers are starting to return from Australia and are ready to settle down and get onto the property ladder."

Russell believes that prices will continue to rise into 2017 but remains worried about the impact of the lack of supply. "Come February, it all depends on what comes onto the market. We desperately need to get more houses built. Prices are continuing to rise month-on-month and there's nothing so far to indicate that this is going to slow down."

Irish Independent

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