Kilkenny: Demand for large homes boosts Kilkenny market
Starter homes and large detached properties are experiencing the fastest growth in the Kilkenny market, albeit for very different reasons.
The price of an average three-bed terraced house jumped 22pc to €165,000 and will likely rise a further 9pc to €180,000 because of a dearth of new developments in the county. Prices for three-bed semi-detached homes rose 12pc to €185,000 and are expected to rise 14pc to an average €210,000 by the end of this year.
Local agent Peter McCreery says "several parcels" of development land are due to be sold by the spring, which should lead to construction on new schemes by the fourth quarter of 2018. A rival agent has begun marketing a new scheme of four and five-bed detached homes called Rath Úllord on the outskirts of Kilkenny City.
"There is frustration among buyers in Kilkenny, not just about the lack of stock, but because prices can get out of kilter with cash buyers up against mortgage applicants who are facing unfair restrictions, especially loan-to-income restrictions. There are a lot of people who could afford a mortgage whose repayments would be less than the rent they are paying," said McCreery.
At the other end of the spectrum, larger homes in Co Kilkenny are witnessing price rises because of demand from home-owning professionals in Dublin who are using the equity released from selling their property in the capital to purchase "substantial homes at drastically reduced prices".
"There are a lot of professional couples in Dublin who want more relaxed lifestyles and are prepared to commute or work from home a few days a week," McCreery said.
This demand helped drive up the price of five-bed detached homes by 5pc to an average €410,000 last year and pushed up the price of detached homes with at least 2,000 sq ft of accommodation by 10pc to €450,000. The latter category was buoyed by demand for large country homes, in a market where the impact of Brexit is being offset by sales to other international buyers with Irish roots.
"A substantial number of country homes were brought to the market last year and that will be the case again in 2018," McCreery said. "The number of UK buyers appears to be down and that's more than likely to linked to Brexit, but there's been an increase in American-based buyers.
"We also saw an increase in the number of Australian based buyers with Irish heritage in the last quarter of 2017."