Wednesday 18 September 2019

Carlow: Investors giving rise to 'artificial' increase

Average Price: €135,000
Areas: Carlow Town, Tullow, Hackettstown, Rathvilly, Bagnelstown.
Up: + 4%
One Year Forecast: + 5%
Assessing Agent: Sothern Real Estate Alliance

A lot of volume came on at the lower end of the market during 2014 which has kept the average property value low in the Carlow market.

Some larger properties slipped slightly in value while the average value per transaction was €120,000 according to Harry Sothern, of Sothern Real Estate Alliance, our expert in this county.

Rathwade House in Nurney sold last year for €600,000
Rathwade House in Nurney sold last year for €600,000

For this sort of money Sothern says you can buy an "average decent" semi-detached property at the "reasonably decent" end of the market, that is not in a ghost estate - this situation remains the same as it did in 2014.

"In terms of numbers, we made as many sales as we did in 2007," says Sothern. "But the prices are very low. Kildare has almost double our values."

Carlow
House Types201420152016
3-BED SEMI IN TOWN, €130,000 €135,000 €142,000
4-BED SEMI IN TOWN, €145,000 €150,000 €157,500
4-bed detached, €190,000 €200,000 €210,000
5-bed detached, €245,000 €250,000 €262,500
3-bed bungalow in town, €190,000 €190,000 €199,500
3-bed bungalow outside town, €160,000 €170,000 €178,500
4-bed bungalow in town, €200,000 €200,000 €210,000
4-bed bungalow outside town, €215,000 €215,000 €226,000
Detached 2000+ sq ft, €250,000 €260,000 €273,000
1-bed apartment, €40,000 €45,000 €47,500
2-bed apartment, €50,000 €60,000 €63,000
3-bed terrace, €110,000 €115,000 €121,000
2-bed cottage, €95,000 €100,000 €105,000
Ex-corporation 2 bed, €70,000 €80,000 €84,000
Ex-corporation 3 bed, €80,000 €95,000 €100,000

Carlow saw the construction of a huge number of buy-to-lets during the boom and many of these are now back on the market at the behest of the banks and receivers.

The market is flooded with apartments and townhouses, which are priced artificially low, at less than they would cost to build.

CASTLEOAKS: This development is on the Dublin Road between Carlow Town and the motorway. Being sold by NAMA, the houses are located 45 minutes from Newlands Cross.Most of the smaller units sold in 2014, but five-bed detached homes are available at €245,000.
CASTLEOAKS: This development is on the Dublin Road between Carlow Town and the motorway. Being sold by NAMA, the houses are located 45 minutes from Newlands Cross.Most of the smaller units sold in 2014, but five-bed detached homes are available at €245,000.

He says the last few months of 2014 were "very busy" thanks to the expiry of the Capital Gains Tax deadline.

"The investors are back in, that's for sure. But it's maybe a little artificial because of that deadline. Investors in the residential market are looking for a return of 6pc to 8pc."

There is currently a shortage of detached houses in the country, outside towns.

The prices are so low, says Sothern, that it wouldn't be possible to build the houses for the same money. Unless there is a divorce or a death, these houses are not coming on the market.

It is, says Sothern, a great time to be trading up - if a purchaser can secure the finance. But bank lending is tight and as a result estimates that about 50pc of all buyers are paying cash.

Sothern is predicting a quiet start to 2015. He reckons the funds that have invested in Irish property will be holding fire and waiting to see what happens before they bring housing stock to the market.

Bearing that in mind, he predicts a 5pc gain over the course of 2015.

Independent.ie Guide to House Prices in Ireland

We have surveyed estate agents in every corner of the country to bring you the most comprehensive guide to house prices in Ireland. Whatever type of home and area you are interested in, the details are just a click away using the links below. 

Irish Independent

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