Thursday 18 July 2019

Limerick City Centre: Limerick city centre prices lift 5pc with 4pc predicted

Glenade, O'Connell Ave, Limerick was sold in April for €930k by Rooneys
Glenade, O'Connell Ave, Limerick was sold in April for €930k by Rooneys

It has been a calmer 12 months all round for the centre of Limerick, which sees properties up in value by an average of 5pc. This follows stronger increases the previous year of 7pc. But there are variations in value performance depending on the type of property and where it is located.

For example, the arrival of some new-home schemes, after something of a drought, softened second-hand prices in some locations. In contrast, Ailbhe O'Malley of Sherry FitzGerald says prices on the Ennis Road and the NCR are more likely to have added 7pc over this time last year given the continued demand for Limerick's older upmarket homes and a worsening shortage of examples for sale. So once again, it is homes on the NCR, closely following by those on Ennis Road which are most likely to add value ahead of the pack in this coming year. Good detached four-bedroom homes of all ages are becoming increasingly difficult to source.

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There had been a slow start to 2018 with a sluggish first quarter but this improved to the degree that transactions were up year on year overall. Slow bidding added to dragging legals to make for much longer campaigns and closures.

The first-time buyer market remains strong and these tended to favour the new homes which appeared given the attraction for high BER energy ratings with no additional work required.

Like many locations, Limerick city centre is also being impacted by increased construction costs which are causing buyers to look less favourably on homes which are in need of work.

No new apartments have been built for some time nor are there likely to be any for some years given that they remain uneconomical to build.

In the meantime, more landlords are now selling up than are buying in. It means the rental market is reaching crisis point, particularly for young professional couples. This is the city centre's biggest issue.

Furthermore, as in other cities, the old Georgians crumble away.

A similar 12 months ahead is predicted by Ailbhe O'Malley who is forecasting sustainable increases of 4pc by this time next year.

Irish Independent

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