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New report shows impact of Covid-19 on housing supply

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A new report has revealed the impact of the Covid-19 pandemic on housing supply across the country

A new report has revealed the impact of the Covid-19 pandemic on housing supply across the country

A new report has revealed the impact of the Covid-19 pandemic on housing supply across the country

The latest report GeoView Residential Buildings Report published by GeoDirectory has highlighted the impact of the Covid-19 pandemic on the construction sector in Cork and across the country.

The report showed that 1,879 dwellings were added to Cork's residential stock of buildings over the 12-month period to June 2020 compared to 2,578 between June 2018 & 2019 - representing a drop of 32.7%. 

Nationally the number of new address points fell by 32.9% year-on-year in the 12-months to June 2020 to 18,617 compared to the figure of 24,773 recorded for the year to June 2019. 

The full report, which is available to view at www.geodirectory.ie, was established jointly by An Post and Ordnance Survey Ireland to create and manage the country's only database of commercial and residential buildings. 

It showed that 4,556 property transactions took place in Cork in the 12-months to the end of last May (down from 5,916 total in May 2019), 18.4% of which were new dwellings, with the average price house price in Cork standing at €272,222.  

While this represented an increase of €11,170 on the corresponding figure for the previous year it was lower than the €17,234 increase recorded to May 2018 and considerably lower than the increase of €27,465 experienced between 2017 and 2018. 

The June 2020 property price in Cork was below the national average of €296,758. However, if you were to remove Dublin (where the average house price came in at a whopping €441,205), the national average price drops dramatically to €230,492. 

The report showed that some 1,678 buildings were under construction in Cork in June compared to 1,478 12-months earlier - a drop of 13.5%. 

It showed that the average vacancy rate for Cork stood at 4% (0.1 % lower than in 2019) and 0.5% lower than the national figure of 4.5%, which itself was 0.3% lower than 12-months previously. 

Also contained within the report were the average house prices for specific Eircode areas across Cork, details of which can be seen in the attached panel. 

They showed that once again Kinsale was the town in Cork with the highest residential property price at €409,615, although this figure is down from €420,625 a year ago. 

Charleville remains the lowest at €150,667, although this figure is considerable higher than that quoted 12-monthns ago of €140,816.  

For the second year in succession Mallow recorded the highest level of activity in Cork over the 12-month period, with 539 transactions (4.3% of which were new dwellings), 201 ahead of Carrigaline which came second on the list. 

Nationally, the report showed the total stock of residential dwellings stood at 2,025,732, with 41,363 transactions taking place over the 12-month period.

Overall, the report concluded the Covid-19 outbreak had "dampened" ongoing construction activity, with a total of 13,361 buildings being classified as 'under construction' in June 2020, down by 3.2% relative to the June 2019 total of 14,107. 

Commenting on the report, GeoDirectory chief executive Dara Keogh said it showed the impact that Covid-19 has had on housing supply in under six months. 

"For the first time in several years, we have seen a drop in the number of new address points added to the GeoDirectory and a fall in construction activity compared to the previous year," said Mr Keogh. 

"Residential property transactions have also declined across the country. Time will tell whether this is just a temporary stalling of supply and demand, or if it is evidence of a long-term change," he added. 

Annette Hughes, the director of EY-DKM Economic Advisory Services said the report show that while additions to the housing stock and construction activity had fallen over the past 12-months it was worth noting the majority of activity was located in Leinster, in particular the Great er Dublin area. 

"This may change in future depending on employment trends such as working from home," she added.

Cork residential property transactions and average house price by Eircode area

Area               Total transactions    % which were new homes     Avge. price

Macroom                  119                           14.3%                                  €205,882

Crookstown               13                             0.0%                                   €269,231

Kinsale                      160                           35.6%                                  €420,625

Cobh                        108                            4.6%                                   €203,704

Midleton                    330                          18.5%                                  €243,636

Ballincollig                  267                          36.0%                                  €329,963

Rylane                        17                            0.0%                                   €252,941

Youghal                    150                            8.0%                                   €172,667

Carrigaline                 338                          40.2%                                   €301,775

Dunmanway               86                          19.8%                                   €176,744

Mallow                       539                            4.3%                                   €158,071

Charleville                    98                            0.0%                                   €140,816

Fermoy                     128                            3.9%                                   €170,313

Mitchelstown                51                         11.8%                                   €166,667

Bandon                      148                         24.3%                                   €227,027

Bantry                        125                          5.6%                                   €183,200

Skibbereen                 177                           5.1%                                   €221,469

Clonakilty                   119                            6.7%                                  €232,773

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