Monday 18 February 2019

Tipperary South: Stock deficit in the south of Tipperary

6 Davis Row, Davis Rd, Clonmel was sold by REA Stokes & Quirke in November for €135k
6 Davis Row, Davis Rd, Clonmel was sold by REA Stokes & Quirke in November for €135k

Bank lending restrictions are having an effect on the market in south Tipperary, with many first-time buyers on an average wage struggling to get mortgage approval.

The area is crying out for stock, but no builder is willing to take the risk on starting a new development because prices are not where they need to be for them to make a profit with the extra costs associated with new building regulations and they fear that locals would struggle to get lending to make the purchase.

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Values went up by an average of 3pc last year, bringing a three-bed semi in town to €170,000 and a four-bed detached out of town to €180,000. There was most activity at the bottom end of the market last year, according to agent John Stokes and REA Stokes and Quirke.

"The first-time buyers was very active, as was the investor," says Stokes. "They were buying up cheap properties in Clonmel and Cashel and Cahir. There is good employment around in places like Boston Scientific and Abbott so the demand is high for rentals. Investors are aware of this and buying the kind of houses that would rent well."

Eastern Europeans are not biased about which area to live in, which Stokes thinks is a really good thing for the county. They are moving into smaller rural towns and helping expand the communities that all but disappeared over the years.

Coleville Road and Powerstown Way in Clonmel have been the most in-demand places for buyers because they are close to the schools and facilities in the town. The main street has been struggling for a few years, but the possible opening of a new 114-bedroom hotel in the town on the former site of the Clonmel Arms Hotel paired with other projects like the Flights of Discovery tourism initiative and a Bulmer's visitors' centre at Dowd's Lane, should bring a boost to south Tipperary.

The houses at the higher end of the market were more difficult to sell in 2018. "Bigger homes have been hard to sell because there aren't that many buyers out there in the area with that money. In the past these would have been sold to UK buyers, but they just aren't around anymore."

A detached 2,000sq ft house is now averaging at €345,000, up 3pc from last year.

Stokes thinks it will be more of the same for the next 12 months, with lack of stock driving prices up by another 3pc.

Irish Independent


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