Killarney: Prices up by as much as 25pc
Published 23/01/2016 | 02:30
Local estate agent Michael Coghlan from Sherry FitzGerald Coghlan is adamant that Killarney is a different kettle of fish to the rest of Kerry.
While the market has been slower to recover in the rest of the county, prices took a huge jump in Killarney in 2015.
The bustling town, which has been boosted by the return of an all-year round tourism trade, is booming again. This may be a contributing factor to the renewed confidence in the property market around the town.
"Sales definitely increased this year," says Coghlan. "Prices increased dramatically in some areas, by as high as 20-25pc in some cases, which is really bucking the national trend. Semis that went at €185,000 a year ago are now changing hands for €204,000."
After a very active year, supply is at a critical level going into 2016. "Historically, Killarney would have had about 650 properties listed but it's down to 160 at the moment. That is about 0.7pc of stock, which is not a normal market - 3pc is considered normal."
If things are to improve, Coghlan believes that building needs to start around Killarney before stock dries up. "Nothing new was built this year. It was totally a second-hand market. With the lack of development plans and finance to build, the market will continue at a very slow pace."
The new Central Bank regulations that require a 20pc deposit for properties over €220,000 have affected the top end of the market in Killarney, according to Coghlan. He sees the biggest impact on properties that are over the €350,000 mark.
Fortunately for Killarney, there has always been an interest from overseas. Coghlan notes that the UK market is very strong at the moment because of the sterling rate. He says that about 5-10pc of the market at the moment is made up of overseas purchasers.
"They are mostly ex-pats with connections to Kerry, be it recent or historical. Australia, Canada and Dubai are three places we have had interest from. Some people aren't even planning on moving back home but they see that there's good value to be had in Killarney at the moment and are making a long-term investment."
Coghlan believes that growth next year in Killarney will be more moderate. "I would give it a steady growth of 14pc."