Friday 20 April 2018

Monaghan: Dublin commuters eye big value

Mason Lodge, Carrickmacross, Co Monaghan. Sold for €375,000.
Mason Lodge, Carrickmacross, Co Monaghan. Sold for €375,000.

Monaghan, one of the latest markets to start its recovery from the property crash, added 12pc to prices through the last 12 months, adding to 17pc experienced in the previous year.

Dermot Conlon of REA Gunne Property in Carrickmacross said the market in Monaghan improved considerably through the course of 2015 and puts much of it down to a shortage of supply, according to Conlon, who says there's a serious lack of homes for first-time buyers, with no new developments in the plans. Conlon is worried about the effect on the market.

"The only houses being built are self-builds," he says. "And there aren't even many of them because of the planning restrictions in the county. Most of them are farmers' sons building on their own lands."

That said, the investor returned to the market in 2015 to places like Carrickmacross and Castleblayney, where three-beds are very popular with tenants. This activity from investors is further pushing the first-time buyer out of the market.

Conlon claims that the new banking regulations that require buyers to have a 20pc deposit for homes over €220,000 have had a positive affect on the area. Buyers who are looking to stay under the threshold are moving into more affordable areas around the county.

"There are people in the rental market that are moving from north Dublin because they might be paying €1,200 a month, but will only need to pay €600/€700 a month in rent in Monaghan," says Conlon. "These people are prepared to do the commute to save €500 a month. We haven't seen so many people move from Dublin to buy property though."

For builders to move back onto sites, Conlon believes the market in Monaghan needs to grow by another 25-30pc.

"Prices are still shy of where they need to be in order for construction to begin again," says Conlon. "There doesn't seem to be any plan for new homes in Ireland at the moment. Social housing is now left for the private landlord to deal with. It's a ticking timebomb."

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Editors Choice

Also in this section