Sligo: Much disparity but 7pc increase overall after initial lull
Published 23/01/2016 | 02:30
The start of 2015 saw an expected slowdown for Sligo Town. This was down to the big rush at the end of 2014 with the abatement of the seven-year Capital Gains Tax exemption.
The market didn't slow down for long and turned in an overall increase of 7pc in the last 12 months, according to Shane Flanagan of DNG Flanagan Forde. "After the initial lull, we had lots of activity. Prices have crept up, maybe not in every area, but on the whole there has been an increase.
"Areas like Strandhill Village, Rosses Point and Sligo Town are doing very well."
Flanagan notes that some smaller towns that were part of the Rural Renewal Scheme were slower to see price hikes. The lack of supply in the county is currently being addressed by the 'finishing out' of some unfinished estates left over from the crash. "Builders are buying unfinished developments from the receivers and are taking them on under the ownership of a company that has funds to finish them off and getting them out to the market." Dillon adds that these properties are being bought up much quicker than anyone would have thought.
The new banking regulations that require a 20pc deposit for homes over €220,000 is seen as a drastic measure by Dillon. He believes that new homeowners already have so much expense with legal fees, furniture and general moving-in costs, that this is an unfair pressure to put on buyers.
Next year should be another steady one for Sligo, according to Dillon.
"I think the market will fare well in 2016. I don't think you're going to see huge price rises," says Dillon. "I reckon they will be below the 10pc mark, probably more like 5pc. But there will be price disparities between different regions."