Sunday 15 September 2019

Cork City North Suburbs: Competition fierce for higher quality houses

Average price: €230,000
Areas: Blackpool, Mayfield, Sunday's Well, Glanmire, Knocknaheeny, Montenotte
Up: + 8%
One Year Forecast: + 5%
Assessing Agent: Savills

The huge variation of property types in the north suburbs, from the plush mansions of Montenotte to the corpo-built terraces in Knocknaheeny, make it a tough job for an estate agent to grapple with average value estimates in this market.

The north suburbs kicked off their recovery on the back of the city centre market at the back end of 2013, registering a 3pc increase on average in that year.

Traffic congestion is driving up demand in Cork city centre.
Traffic congestion is driving up demand in Cork city centre.

The recovery gained momentum through 2014, with prices today standing at 8pc higher on average than they were a year ago.

The property type which increased fastest in value through 2014 was the investor pursued one-bedroom apartment for which prices hiked by 50pc (albeit from a low base) to an average of €60,000.

Cork City North Suburbs
House Types201420152016
3-bed semi, €180,000 €200,000 €210,000
4-bed semi, €220,000 €230,000 €242,000
4-bed detached, €330,000 €340,000 €357,000
5-bed detached, €340,000 €350,000 €357,000
4-bed bungalow, €140,000 €150,000 €159,000
1-bed apartment, €40,000 €60,000 €63,000
2-bed apartment, €65,000 €85,000 €89,000
3-bed terrace, €120,000 €130,000 €137,000
Ex-corporation 2-bed, €80,000 €95,000 €100,000
Ex-corporation 3-bed, €90,000 €110,000 €116,000
2/3 storey over basement, €450,000 €475,000 €500,000

Two-bed apartments, also favoured by investors and cash buyers, also increased their values substantially - by just over 30pc.

Apartments are expected to experience a lower level of growth through 2015 thanks to the expiry of capital gains incentives for investors and the perception that the best of the 'off bottom' value has already been snatched.

SUNDAY'S WELL: Turnkey prime period homes overlooking the Lee are in high demand near UCC and Bon Secours, with big Apple execs based not too far away.
SUNDAY'S WELL: Turnkey prime period homes overlooking the Lee are in high demand near UCC and Bon Secours, with big Apple execs based not too far away.

In this very mixed market, the three-bed semi presents the most average type and it now has stiff competition for limited stock, causing values to rise by 11pc since last year as families attempt to establish themselves in the northern suburbs.

"Supply of family homes is the biggest problem in this market," says Michael O'Donovan of Savills.

"But even so, price growth has been steady and there has been no runaway inflation. The big news is that the banks started lending again in 2014 and it means that first-time buyers are back."

In the market for this north suburban average family homes, 70pc of buyers are now on mortgages and investors have been rare.

Many of the latest buyers had been looking over the last 12 months but remained non-committal until recently.

Rising prices and available credit have encouraged them to commit.

For this reason the Central Bank's dithering on its proposed 20pc deposit for buyers is likely to affect this end of the market most.

Moving up a rung, competition is fierce for expensive quality family homes with 50pc more viewers and bidders for properties than a year ago.

Among the ranks of bidders for these properties is a surprising number of smart renters who sold their previous properties at a premium just before the crash kicked in.

These have returned to market recently and now ready to spend their banked proceeds from years ago.

Their target properties are to be found in the mid-upper to upper end at Montenotte, Sunday's Well and Glanmire.

Independent.ie Guide to House Prices in Ireland

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Irish Independent

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