independent

Tuesday 18 June 2019

House prices in Co Cork rose by 6.3 per cent over the course of 2018

Latest Daft.ie report shows asking price for County Cork houses has increased by almost 54% since 2013

House prices across the county had increased by 6.3% over the course of 2018, with the average asking price standing at €220,1743 as 2018 drew to a close
House prices across the county had increased by 6.3% over the course of 2018, with the average asking price standing at €220,1743 as 2018 drew to a close

Bill Browne

The latest DAFT.ie House Price Report has revealed that the average asking price for a house in Cork County has increase by almost 54% since its lowest point, or trough, in 2013.

The report, widely regarded as a key barometer of the Irish housing market, analysed trends within the Irish residential sales market during 2018, providing a comprehensive review of activity within the housing sector over the course of the year. 

It showed that despite a 2% drop in the final quarter of the year, house prices across the county had increased by 6.3% over the course of 2018, with the average asking price standing at €220,1743 as 2018 drew to a close.  This was compared to the average asking price at the close of 2017 of €207,211. While all of the counties in Munster recorded year-on-year increases, Waterford was the only one to come near Cork, with an average asking price of €217,977. 

At the end of 2018 the figure for Kerry stood at €192,657 (up 7.9% on 2017), Clare €183,339 (up 7.9%), Limerick €189,218 (up 11.4%) and Tipperary €177.189 (up 11.1%). 

In Cork City the average asking price at the close of 2018 stood at €275,703, representing a year-on-year increase of 5.8% with the differential between then and the aforementioned 2013 trough standing at a whopping 67.9%. 

Waterford City stood at €174,879 (a year-on-year increase of 8.6%) and Limerick City €194,214 (up 9.8%). Munster's three cities were among the very few markets that saw prices increase over the final three months of 2018.

Staying in Munster, the report showed that there were more than 7,200 properties on the market as 2018 came to and end. That figure was almost 3% higher than a year ago - the first time availability had risen in almost a decade. 

The report showed that, up to September of last year, there were 14,000 transactions across the entire province, up by 7% on the same period to September 2017.  This rise in availability was reflected countrywide, with the number on the market rising by 10% over the course of 2018. In December, for example, more than 23,500 properties were up for sale across the country compared to 21,200 a year earlier.

According to the report, South County Dublin remained by far the most expensive area of the county to buy, with the asking price standing at €591,096 (up 4.8%). Counties Longford, Leitrim, Sligo and Roscommon remain the cheapest counties to buy a house in the country. 

Nationally, house prices have risen by 54.6%, or almost €90,000 since the third quarter of 2013, with the average asking price for a house standing at €254,000. The annual increase of 5.5% was the lowest rate recorded since early 2014. 

The report's author, TCD economics professor Ronan Lyons, said the trend of greater availability of homes has started to spread beyond the capital to the rest of the country "after many years of dwindling stock". 

"Unsurprisingly, with greater supply, the bargaining power of buyers improves and price increases have slowed down. The annual rate of inflation in list prices for Dublin in 2018 was 2.9pc, down from 11.7pc a year ago. Outside Dublin, as you might guess from stable rather than improving supply, inflation has levelled off rather than cooled: increases of 7.3pc in 2018 compared to 7.4pc in 2017," he said. 

"Unfortunately, no such relief is coming down the tracks in the rental segment - or indeed the third main component of the housing system, social housing. In both of those segments, the system needs to increase at least by a factor of ten. That won't happen on its own and thus it is those two segments where policymakers need to focus now," he added.

Corkman

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