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Cork City South Suburbs: Prices in south suburbs bouncing out of average buyer's loan zone

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‘Lisheen’, Woodview, Douglas, went last July for €1.22m by Marsh’s Auctioneers

‘Lisheen’, Woodview, Douglas, went last July for €1.22m by Marsh’s Auctioneers

‘Lisheen’, Woodview, Douglas, went last July for €1.22m by Marsh’s Auctioneers
  • Average Price €342,000
  • Areas Douglas, Blackrock, Rochestown, Mahon
  • Up + 6%
  • One Year Forecast + 5%
  • Assessing Agent Savills

The so-called 'exceptions bounce' is expected in these more affluent south suburbs in the months ahead as buyers of three- and four-bed homes in particular attempt to increase their spending power early in the season by garnering one of the 20pc of 'exception' loans which banks are permitted to issue each year outside of normal lending rules.

The exceptions are front-loaded into the start of the year and therefore, in areas where average homes are priced in excess of €300,000, they tend to create more activity for average property types early on, with stronger bidding and buyers with higher spending power.

According to our local property expert on the ground, Michael O'Donovan of Savills, three- and four-bed semis are up by 7pc on a year ago while most other property types have increased in value by slightly less (5pc). It means that overall prices in the south suburbs are up by around 6pc on average across the board, slightly above last year's 5pc growth rate. Lending is vital, with cash buyers now making up just 30pc of all sales.

Increased development is taking place in the south suburbs and, as a result, Mr O'Donovan is predicting a softer 5pc increase through 2020 as more new homes come to market.

Cork City South Suburbs

House Type 2019 2020 2021
3-bed Semi €320,000 €342,000 €359,000
4-bed Semi €450,000 €481,000 €505,000
4-bed Detached €580,000 €609,000 €639,000
3-bed Bungalow €360,000 €378,000 €397,000
4-bed Bungalow €370,000 €388,000 €407,000
One-bed Apartment €180,000 €189,000 €198,000
Two-bed Apartment €225,000 €236,000 €248,000
2-bed Terrace: €260,000 €273,000 €287,000
3-bed Terrace €280,000 €294,000 €309,000
3-bed Townhouse €260,000 €273,000 €287,000
Detached On Own Grounds €1,350,000 €1,417,000 €1,487,000

New four-bed townhouses are selling well at Ballintemple, where around 50 units out of 70 have changed hands for around €500k.

Young professional families are tending to do well generally thanks to Cork's ever-improving employment situation. Lots of trading up is taking place, with more affluent first-time buyers making an impression. The extension of the Help to Buy scheme is proving particularly beneficial for new-home schemes.

Property Hotspot: Douglas

The city side of the swish suburb is where Savills believes we are most likely to see value increases above the norms in 2020. Solid and spacious family homes in a central location mean our experts be

In the other direction, there's also lots of demand for new two-bed apartments on the ground floor in duplex schemes, with older couples trading down from larger houses in these suburbs.

One such apartment will now cost you €290,000-plus, while the three-bed townhouse overhead is making €500,000. Rents continue to rise and a three-bed semi that went for €1,500 per month a year ago is now at €1,600. Rents for two-beds are also up, now at €1,400 per month compared with €1,300 a year ago.

The mature nature of the second-hand stock in the area means a shortage of builders and tradesmen and the associated increased costs of renovations is likely to have a somewhat dampening effect on the values of second-hand homes in need of work.

Nonetheless, three-bed terraces are likely to go through the €300,000 barrier this year, while four-bed semis will break the €500,000 barrier. One-bed apartments are creeping up to the €200,000 mark while the staple, the three-bed semi, is predicted to go to €359,000, moving out of the affordability zone for a couple each earning an average salary.

How much is your House worth in 2020?


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