Thursday 21 September 2017

Recovery potential of 20% but only if the banks release credit

Listowel Horse Fair on the Main Street in Listowel Co Kerry.
Listowel Horse Fair on the Main Street in Listowel Co Kerry.
Mark Keenan

Mark Keenan

KERRY

Tralee, Dingle, Listowel, Kenmare

No change

One Year Forecast: Up 20%

Average Price: €105,000

Assessing Agent: REA Eddie Barrett

The Market:

Last year was the year a sense of reality about price and value of property entered the brains of vendors, according to Tralee-based agent, Eddie Barrett.

"Prior to last year ridiculous expectations remained but they have all been washed away now after five or six years hanging on thinking things would get back to the way they were," he said. A pick up later in the year was largely due to banks dumping liquidated properties on the market.

Barrett describes rural Kerry as a "bargain hunters' paradise", with prices 70% below building costs in certain cases.

Values are being dictated by the numerous sales of distressed properties by receivers on instructions from the bank, mainly at rock-bottom prices.

Up to 90% of sales are cash and local banks appear to have very little, if any, discretion when it comes to mortgage lending.

The "smell of salt air" still generally commands a 20-30% premium in many areas. Kenmare in particular has issues with the overhang of holiday homes, even though ex-pats and foreign investors have begun taking up some of the slack in the town over the past couple of years.

While Kerry did manage to avoid the ribbon developments that blighted other Atlantic coastal areas, it does have its share of ghost estates in places such as Lixnaw, Sneem and Castlemaine.

There is recovery potential of around 20% but only if the banks release funds to encourage property sales.

The Prices:

1-bed apartment:

Jan 2013: €35,000

Jan 2014: €35,000

Jan 2015: €42,000

2-bed apartment:

Jan 2013: €55,000

Jan 2014: €55,000

Jan 2015: €66,000

2-bed terrace:

Jan 2013: €60,000

Jan 2014: €60,000

Jan 2015: €72,000

3-bed terrace:

Jan 2013: €65,000

Jan 2014: €65,000

Jan 2015: €78,000

Ex-corporation 3-bed:

Jan 2013: €60,000

Jan 2014: €60,000

Jan 2015: €72,000

3-bed semi in town:

Jan 2013: €105,000

Jan 2014: €105,000

Jan 2015: €126,000

3-bed semi out of town:

Jan 2013: €55,000

Jan 2014: €55,000

Jan 2015: €66,000

4-bed detached:

Jan 2013: €115,000

Jan 2014: €115,000

Jan 2015: €138,000

3-bed bungalow outside town:

Jan 2013: €100,000

Jan 2014: €100,000

Jan 2015: €120,000

4-bed bungalow in town:

Jan 2013: €115,000

Jan 2014: €115,000

Jan 2015: €138,000

Detached 2000+ sq ft:

Jan 2013: €275,000

Jan 2014: €275,000

Jan 2015: €330,000

Irish Independent

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