Kerry experienced the highest percentage jump in house prices of any county or city in the Republic of Ireland during the second quarter of 2022, and a local Real Estate Alliance representative is certain that prices here will continue to rise.
The figures were outlined by Real Estate Alliance (REA) in a national survey focusing on the prices of second-hand, three-bed, semi-detached properties, the typical stock home. This, REA says, provides an accurate picture of the second-hand property market in towns and cities in the Republic of Ireland.
The average price of such a house in Kerry is now €297,500, a rise of 7.2 per cent – approximately €20,000 – from quarter one of 2022. Kerry’s average price is roughly €11,000 above the national average.
The typical Kerry home is €90,000 more expensive than in neighbouring County Cork, €77,500 more than County Limerick, and €37,500 more than Limerick City.
Leaving aside Dublin and its neighbouring counties, only the Cork City (€345,000) and Galway City (€320,000) regions have more-expensive three-bed semis than Kerry on average.
“These things come out every quarter, and it’s the same thing going back for two years now,” Donal Culloty of REA Coyne and Culloty told The Kerryman. “If you take a town like Killarney, there has been no new development inside in the town for two years, or there’s nothing planned for the next two years. If you don’t have new houses being built, you can’t sort the problem. There isn’t enough supply coming onto the market.
“You have a perfect storm. Even those builders who have land won’t start a development now because the material prices are too high. They don’t know how much a build is going to cost them over a two-year period. How can they start a 50- or 60-house development?
“The only thing that could temper it is the fact interest rates have risen and are forecast to rise again, and you have the energy and cost-of-living crisis. That might temper it as I say, but it really is down to supply, and it’s a major issue in Kerry. You can’t get a property to rent, and it’s the same story with three- and four-bed semis.”
Mr Culloty added that the increase in Kerry prices has been further driven by the rise in remote working as more people moving from urban settings see the county as a particularly attractive option. He also said it’s worth keeping in mind that while the average price is over €290,000, prices do differ greatly from one part of Kerry to another.
This significant rise in Kerry prices coincides with an increase in supply levels nationally as more private landlords sell their additional properties. This has tempered price rises in other parts of the country.
The survey also found that 40 per cent of sales in Kerry are to first-time buyers. Nationally, 58 per cent of purchasers over the last quarter were first-time buyers. The average time taken to sell a property in Kerry has, meanwhile, risen from four weeks to six.