Thursday 27 June 2019

Cork City North Suburbs: First-time buyers boost Cork's northern suburbs

Lakemount, Glanmire, sold last February for €775,000
Lakemount, Glanmire, sold last February for €775,000

Inflation in Cork city's north suburbs continued at a steady and somewhat worrying rate of 8pc through the last 12 months, and roughly the same is expected to be added to home values in 2018.

There were some exceptions. As was the case with Cork city centre, the market seemed to realise overnight that one-bed apartments were substantially undervalued (fetching €83,000 a year ago), and these shot up to €120,000 - a rise of 45pc - which better reflects their earning potential.

Two-bed apartments ramped up by 29pc from €105,000 to €135,000.

Meanwhile, 2018 is likely to be the year in which four-bed semis in the north suburbs move above €300,000 for the first time since the crash, and in which two-bed apartments and three-bed former council homes hit close to the €150,000 mark.

This location includes a particularly diverse mix of neighbourhoods containing myriad property types - from the mansions around Sunday's Well to the former council houses at Knocknaheeny.

It also features some of the city's best schools - and agents have noticed school catchment becoming a more important factor among those looking to buy property.

Apple is a big employer locally and recently extended its Hollyhill facility. And this is the suburban locale most impacted by the multinational's profitable presence.

We are seeing the last wave of locals coming home to Cork city from abroad after the recession, and if they have money they are looking to buy a home close to Mum and Dad.

The age profile of owners in the north suburbs means that this is the part of the suburbs attracting more returning sons and daughters than any other.

However, what has also been noted is a sharp curtailment in funding from the 'bank of Mum and Dad', with parents providing much less if any money to first-time buyers through the last year.

There are likely two reasons for this: first of all Mum and Dad are now cash-strapped, having perhaps helped out a few older siblings in previous years to get on the ladder.

Second, the banks have been more open to lending and in particular targeting first-time buyers, so those who wish to get on the property ladder are better equipped to make the financial running themselves.

Rents have been surging and likely will continue to rise on the back of shortage of lettable homes. A four-bed house in Glanmire, for example, now commands earnings of up to €2,000 per month, while a two-bed apartment in the same area is now pushing from €1,000 to €1,200 per month.

For the second year in a row, Sundays Well has pipped Montenotte as the northern suburb's hotspot status - helped by decisions from big execs working with multinationals.

Irish Independent

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