Tuesday 23 October 2018

Cork County North: Value hunters from Cork city head up to north county

Rathclare House, Buttevant, sold last August for €429,500
Rathclare House, Buttevant, sold last August for €429,500

Prices are on the rise in north Co Cork as towns such as Mallow are finally experiencing a long-awaited economic recovery and attracting buyers priced out of Cork city, Carrigaline and Ballincollig who are willing to commute from Mallow by train - just a 20-minute journey.

The price of a four-bed semi in town rose 10pc to €230,000 last year and is likely to rise a further 7pc by the end of 2018.

John Singleton of Sherry FitzGerald O'Donovan in Mallow says, "Mallow took longer to find its feet and only just saw a turnaround in 2017, so we have seen dramatic rises.

"The market has been very, very busy because the availability of credit has started to become normalised. But we haven't seen much construction activity in Mallow town, so there is shortage of supply in both new homes and second-hand homes. That supply is only going to tighten this year because there are no plans for new builds to come on stream."

The Clonmore scheme in Mallow - a resurrected development of detached and semi-detached houses that was put on ice after the crash - was finished off and its remaining stock was sold.

But an increase in building costs means it's not financially viable for developers to build three-bed semis in Mallow when they could make €300,000 for the same product in Midleton or Carrigaline, Singleton says.

A growing number of tenants in north Co Cork are seeking to buy because an exodus of landlords from the rental market two years ago has driven up rents for remaining stock - a semi-detached home in Mallow that costs €1,000 a month to rent would cost €850 in mortgage repayments, Singleton explains.

As a result of that demand, prices have risen for properties that are perceived as affordable - including two-up two-downs, which soared 37pc in price to €150,000 last year and are expected to jump a further 17pc to €175,000 this year.

While Mallow's property market has benefited from the town's proximity to Cork city and its suburbs, less accessible north Cork towns such as Buttevant and Kanturk haven't experienced the same demand, Singleton says.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Editors Choice

Also in this section