Potential fall-out from a No-Deal Brexit, and uncertainty surrounding the continuation of the Government’s Help to Buy schemes for first time buyers, will influence the performance of the Irish residential property market for the rest of this year, estate agency Lisney says.
In a report just out this week, and with a specific focus on the Cork house and construction sectors, they report a general steady upward momentum for the first half of this year but uncertainty over Brexit, and the Help to Buy scheme may temper and alter this.
Lisney tally up 41 new homes schemes currently on the market in the greater Cork area, as the construction sector has ramped up over the past several years, and say between them have planning permission to provide 2,640 units in total.
“The new homes market continues to be stimulated by the Help-to-Buy scheme,” says Lisney director Trish Stokes, adding that “signalling the continuation of this scheme is vital for the new homes market, as we near the end of the year.”
New home sales constitute circa 15% of sales in Cork in the past several quarters, rising to 25% of total sales among first-time buyers.
These buyers remain active at 29% of the market, Lisney note and quote CSO figures that those trading up or down now account for 52% of transactions in Cork.
However, a lack of access to bridging finance “is proving challenging to all purchasers, and especially those looking to trade down,” they state: Central Bank lending limits continue to have an impact, the sub-€300,000 market is very active, and 78% of the homes sold in Cork in Q2 fell into this category.
Sales above €500,000 represented 5% of the overall sales in Cork county, broadly in line with the trend seen over the last year, the report adds.
Close to 1,200 properties transacted in Cork in the three months to May 2019, and while this indicates an annual volume decline of 6.7%, the median price of properties sold in the period grew 10.4%, with the median price of new properties up 12%, compared to 11.1% growth in the median sale price of existing homes.
The Q2 Lisney Residential Value Index shows a 1.1% quarterly increase, and an annual increase of 6.1% in values.
On the Cork home building front, the Lisney report says residential construction “continues to grow with a 27% increase in the number of units completed in 2018, bringing housing completions to 1,771 units..”
Of this, 90% or 1,555, were houses, while apartments accounted for 10% of units completed in ‘18, up from just 6% of total construction in 2017.
The report adds that large-scale responses to “overwhelming demand in the rental market are on track to increase the overall supply” with a number of fast-track plannings in Cork, with over 2,250 units granted permission under the scheme, 70% of them residential and 30% are for student accommodation/PBSAs.
Details: Lisney 021-4275079