Analysis of Munster’s house sales over the full year of 2018 shows evidence of increasing moves towards urbanisation, as well as a continuing pick up both in the number of property transactions, and in property values.
That’s according to the managing director of MyHome.ie, Angela Keegan, after the property website conducted an analysis of transactions based on the national Property Price Register (PPR).
It showed an overall 2% increase in house volume sales in Munster, up to 14,178, with Cork city and county accounting for 6,023 transactions, up 2.7% on levels in 2017. This represents 42.5% of the Munster market, or 10.65% of national sales which stood at 56,836.
However, Waterford showed the biggest percentage surge in sales during 2018, up 11.7%, but that’s off quite a low base, of 1,554 transactions during 2018, just a few less than in Tipperary.
The value of Waterford’s sales also rose strongly, up from €214m to €272m, up 27% on average, representing an average sale value of €175,000 per property.
Across Munster, the total value of property sales increased by 17% to over €3bn, and while the number of sales rose in most counties, they fell by 4.4% in Clare, and by 0.4% in Kerry.
Ms Keegan said the figures reflected Cork’s economic strength and a general move towards increased urbanisation.
“Cork — and to a lesser extent Limerick and Waterford city — have been quite successful in attracting investment and higher-paid jobs.
"As a result, cities are where people increasingly want to live, and if they can’t live there due to the lack of affordable housing, they tend to move to the commuter belt,” she noted.
“In contrast we saw a drop in sales in many western counties, including Clare and Kerry.”
The value of transactions in Cork was up significantly in 2018, with the sale of several high-profile apartment buildings — including the Elysian building with more than 200 apartments which were sold for around €70m (that figure excludes the Elysian’s commercial element) — contributing to the increase.
According to the analysis of Price Register records, the value of Cork sales “also increased dramatically, rising from €1.36bn to €1.63bn, an increase in overall value of just over 20%, to an average of €270,000 per sale. The value of sales in Limerick rose by 20% from €345m to €412m, showing an average of €197,500 per sale.
According to Ms Keegan: “The increase in the volume of sales in Waterford in particular is encouraging as indeed is the increase in sales across the province as it shows the market is continuing to recover.
"For a market like Ireland’s with some two million homes, we should be seeing at least 4% of those properties changing hands annually.
"We’re currently under 60,000 sales nationally and we need to get to circa 80,000 sales a year, but the graph is moving in the right direction.”
The number of Irish properties currently listed for sale according to MyHome.ie stands at over 21,000 residential properties, up by 13% up on spring 2018 when there were 18,965 properties listed for sale while the website also covers 500 new developments “so new home building is coming on stream and making an impact”, Ms Keegan noted.