Wednesday 18 September 2019

Killarney: New homes needed as feel-good factor returns to town

Average Price: €185,000
Up: + 11%
One Year Forecast: + 10%
Assessing Agent: Sherry FitzGerald Coghlan
 

Killarney agent Michael Coghlan says there has been a massive improvement in the market in the town since the middle of 2014.

Kilbonane, Beaufort, Killarney, known as 'Kilbonane Ranch'. The property sold in December 2014 for €355,000
Kilbonane, Beaufort, Killarney, known as 'Kilbonane Ranch'. The property sold in December 2014 for €355,000

"There is a real shortage of four and five-bed family homes. Nothing is being built so it is an entirely second-hand market and the increases reflect the fact that there is great demand and very little supply."

Coghlan sees the situation remaining the same in 2015, which will lead to further increases.

Kilarney
House Types201420152016
3-bed semi in town, €167,000 €185,000 €203,500
3-bed semi out of town, €105,000 €115,000 €126,500
4-bed semi in town, €178,000 €195,000 €214,500
4-bed semi out of town, €120,000 €125,000 €137,500
4-bed detached, €230,000 €280,000 €308,000
5-bed detached, €230,000 €310,000 €341,000
3-bed bungalow in town, €195,000 €215,000 €236,500
3-bed bungalow outside town, €150,000 €165,000 €181,500
4-bed bungalow in town, €210,000 €225,000 €247,500
4-bed bungalow outside town, €170,000 €180,000 €198,000
"Detached 2,000+ sq ft", €250,000 €260,000 €286,000
Holiday Home, €100,000 €120,000 €132,000
1-bed apartment, €47,000 €55,000 €60,500
2-bed apartment, €80,000 €95,000 €104,500
2 up/2 down, €80,000 €95,000 €104,500
3-bed terrace, €125,000 €135,000 €148,500
2-bed cottage, €90,000 €110,000 €121,000
Ex-corporation 2-bed, €90,000 €110,000 €121,000
Ex-corporation 3-bed, €100,000 €120,000 €132,000

"It's a 12-month procurement process," he says, "so I don't see any new houses being released on to the market this year.

Even if developers do manage to break ground this year, it will be 2016 or 2017 before those houses are available for sale. Building is feasible again though in Killarney, because prices are at a level where developers will make a margin.

In the town, property on Muckross Rd, Ross Rd, and Woodlawn Rd is much in demand, while on the periphery, the areas to watch are Fossa, Muckross and Aghadoe.
In the town, property on Muckross Rd, Ross Rd, and Woodlawn Rd is much in demand, while on the periphery, the areas to watch are Fossa, Muckross and Aghadoe.

But development finance is still an issue, and builders are having to use cash - if they have it."

Elsewhere in Kerry, in nearby Kenmare for instance, overhangs of stock make for a different picture.

Last year saw the return of the North American tourist to Killarney, and the hoteliers and restaurateurs of the town are happy again. This year will see an increase in conference business in the town, and a packed schedule of summer events.

"There are good schools in all areas of the town, and Liebherr is the biggest employer in the town, contributing €42m in wages to the local economy," says Coghlan, "so family homes are always in demand.

Investment properties are still being deleveraged and coming on stream, particularly in Tralee, but most of those are consensual sales and they are not advertised as distressed.

"Unless there is some serious external shock - in Europe for instance - then I believe the momentum is there to sustain increases of around 10pc in the year ahead.

I think the Government will row back on the 20pc deposit requirement, although in Killarney first-time buyers have tended to be conservative and most of them would be putting down a deposit of that order anyway. Prices are still down 40pc on 2006."

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