Tipperary South: Former ghost estate in Clonmel brings life to market
Tipperary South is experiencing a bit of a house drought. There are still plenty of interested buyers out there but no homes for them to buy.
The lack of stock is driving up prices in the area, according to local agent John Stokes of REA Stokes & Quirke who estimates that homes are now 8pc more expensive than a year ago.
"Supply is going to be a huge problem going forward," says Stokes. "A lot of properties that would have traditionally been bought by investors are now being snapped up by owner-occupiers. This is then having a detrimental affect on the rental market."
The cost of construction and the prices that are being achieved at present in Tipperary South are still making it uneconomical for the builder to return to building.
The new Central Bank lending restrictions which require a 20pc deposit on a home over €220,000 have had some impact on the market in the area.
"The larger detached houses at the top-end of the market are harder to shift. It also means people are travelling out a bit further in search of lower prices," says Stokes.
There are still a few repossessions being sold by the bank to keep turnover going. Also a ghost estate in Clonmel called Kylemore Estate was recently sold. This has brought a much-needed boost to Tipperary South.
"It was an estate of 19 partially complete houses," says Stokes. "A builder bought the development and is now in the process of finishing them up. There are only eight houses left to sell on the estate.
"It shows the strength of the market in Clonmel. The builder who purchased the site did a beautiful job doing them up and they're selling really well."
Stokes believes that the lack of available properties for sale will drive prices up in 2016, but there won't be any huge increases.