Cork Docklands funding puts renewed focus on affordability of homes in the city

2019 report revealed that a first-time buyer would need a salary of €125,000 to afford a two-bed apartment in Cork

Taoiseach Micheál Martin announcing the €50m facelift for parts of Cork City centre as part of the major €405m urban regeneration funding for the Cork City docklands at Kennedy Quay, with the HQ office development in the background. Picture: Eddie O'Hare

The major funding announcement made by the Government today for the redevelopment of the Cork Docklands must now be matched by investment on the ground, Cork Chamber has said.

The Taoiseach, Micheál Martin, today confirmed funding of €353.4m to enable works for what will be one of the largest regeneration programmes in the State. 

The Docklands area to the south of the River Lee covers 146 hectares and will ultimately have the capacity to accommodate 20,000 people and 29,000 jobs.

Speaking on Kennedy Quay today, the Taoiseach said the investment will transform the recreational, residential, and commercial areas, and prime the docklands for significant follow-up private sector development.

The announcement includes funding for new bridges that will unlock further development in the area including the Eastern Gateway Bridge that will connect the Lower Glanmire Rd to Monahan Rd and a new bridge from Kent Railway Station to the Docklands that will accommodate the planned light rail system.

A CGI image of the possible LUAS line and bridge between Kent Station and Cork's South Docklands.

Significant office and hospitality developments have recently been completed at Kent Station and at Albert Quay in areas considered to the gateway to the docklands.

Tech giant Apple recently acquired three floors of the new HQ development by Bam/Clarendon. This is adjacent to the newly opened Dean Hotel and close to the 80% let Penrose Dock office complex by developers JCD.

Further developments

O'Callaghan Properties' (OCP) office development Navigation Square on Albert Quay is anchored by financial services firm Clearstream. OCP is expected to lodge a planning application this year for the first phase of new development in the South Docks, on a 32-acre block, to include the R&H Hall building and Gouldings site, acquired in 2019 from Origin Enterprises. Gouldings are awaiting a planning decision to move their fertiliser plant from Centre Park Rd further down the harbour to Marino Point. If approved, it will free up further land for redevelopment. 

A planning decision is expected shortly on what will be Ireland's tallest building on the former Port of Cork site where a new hotel and museum is planned. 

At the eastern end of the Cork Docklands, the funding announced today will allow for the completion of the Marina Park development extending it to Blackrock. Homebuilder Glenveagh is awaiting a planning decision for more than 1,000 apartments at the Marquee site in the Cork Docklands.

Planned light rail

In tandem with these private developments, an outline route for the planned light rail system that will connect Ballincollig to Mahon through the city centre is expected to be published before the end of the year. The target is that 70% to 80% of all movement in the docklands will be by foot, bicycle, or public transport.

The docklands development is a key element of the Ireland 2040 plan which envisages significant population growth for Cork. However, concerns remain over the level of housing that will be required to sustain such growth.

Cork Chamber chief executive Conor Healy said the funding will put the infrastructural cornerstones in place to set the docklands and City centre up for success.

It is essential that the announcement now quickly shifts to investment on the ground and that viability and affordability of apartments is tackled at a policy level. 

"Delivery is critical to investor confidence far beyond the boundaries of the regeneration areas set out. Cork must deliver on its infrastructural commitments or our global competitors will steal a march as we move on from this pandemic,” Mr Healy said. 

Cork Chamber has repeatedly raised concerns over the affordability of apartments which are seen as essential if the city's population is to grow.

Home affordability report

The Chamber and the Construction Industry Federation (CIF) commissioned a report in 2019 which found the projected sale price of a new two-bed apartment in Cork City, the docklands, or suburbs ranges from €389,000 to €486,000, meaning that a first-time buyer would need an income of between €100,000 and €125,000 to afford such a home.

Speaking to the Irish Examiner today, the Taoiseach said he was conscious that the cost of delivering apartments was an issue. "The level of investment here in terms of infrastructure will be a factor in facilitating the construction of residential units," he said.

"Our view is that we are investing in the infrastructure so that will make this area much more attractive for investment and will make residential units much more viable."