Monday 23 September 2019

Limerick City Suburbs: Sales on up but prices stay static

Average Price: €230,000
Areas: Raheen, Dooradoyle, Castletroy, Parteen, Corbally
Up: No change
One Year Forecast: No change
Assessing Agent: Rooney Auctioneers

Limerick City's suburban market has always defied national norms in that it has tended to be uber conservative in outlook. Locals did not get as excited about property during the boom years as they did elsewhere in Ireland.

So prices didn't surge as much and as a result, when the crash came, they fell back by much less. Values in Limerick City's suburbs fell by perhaps one third from 2007 to 2013 when elsewhere they collapsed by between 40pc to 60pc on average.

7 Kylemore, Old School House Road, Castletroy, Limerick, sold in September 2014 for €474,000.
7 Kylemore, Old School House Road, Castletroy, Limerick, sold in September 2014 for €474,000.

Values stopped falling here at the end of 2013 and have largely been static for most of the last year - a trend that local agents believe will continue through 2015 despite the conditions that are causing prices to rise elsewhere.

The exception comes with a marginal rise in the price of larger detached homes, three-bedroom bungalows and three-bed non-corporation terraces for which demand has been high and supply tight, says Lisa Kearney of Rooney Auctioneers.

Limerick City Suburbs
House Types201420152016
3-bed semi, €215,000 €21,000 €215,000
4-bed semi, €230,000 €230,000 €230,000
4-bed detached, €300,000 €300,000 €300,000
5-bed detached, €400,000 €400,000 €400,000
3-bed bungalow, €200,000 €205,000 €205,000
4-bed bungalow, €260,000 €260,000 €260,000
1-bed apartment, €40,000 €40,000 €50,000
2-bed apartment, €55,000 €55,000 €55,000
3-bed terrace, €80,000 €85,000 €85,000
Ex-corporation 2-bed, €35,000 €35,000 €35,000
Ex-corporation 3-bed, €45,000 €45,000 €45,000
3-bed duplex, €110,000 €110,000 €110,000
"Detached 1,500-2000 sq ft", €320,000 €320,000 €320,000
"Detached 2,000+ sq ft", €430,000 €435,000 €435,000

However, despite its citation of rising numbers of transactions, the agency predicts a continued price freeze overall into 2015.

"The market has seen an increase in the number of enquiries and viewings over the last six months. In fact activity has been quite buoyant across many areas.

CASTLETROY: The area of highest demand for homebuyers, not least because of an eagerness by families with children to live in the catchment area of the popular Castletroy College School.
CASTLETROY: The area of highest demand for homebuyers, not least because of an eagerness by families with children to live in the catchment area of the popular Castletroy College School.

"The number of sales recorded has also steadily increased compared to the previous year and we are actively selling in all areas as the present time. As a result, we are of the view that prices for starter homes - terraces, semi-detached and some detached properties - will not fall any further."

The agency says that competition for good starter homes has assisted in some achieving more than their asking prices.

However these have to be in "turnkey" condition with little interest among buyers in anything that requires a significant degree of renovation.

Local mortgage lending has commenced again but qualifying conditions have remained stringent.

"The feedback that we are achieving from purchasers is that if they are successful in attracting a mortgage from the bank then they invariably do not have the additional funds to renovate or refurbish the property."

Some unusual exceptions have applied. Rooney cites the case of a two-bedroom apartment overlooking the Shannon which was placed on the market at €175,000, attracted over 40 viewers and went sale-agreed at €240,000.

However, with bank lending remaining tight for local property and Central Bank cooling measures possibly on the way, the agency is predicting an improvement in activity but much of the same in terms of prices for 2015.

Independent.ie Guide to House Prices in Ireland

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Irish Independent

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