Landlords quitting market responsible for 60% of second-hand house sales in Co Cork, says survey

The Q1 REA Average House Price Index attributed one in five sales of city second-hand house sales to landlords getting out

Landlords exiting the property market was responsible 60% of second-hand house sales in Cork county in the first quarter of the year, according to a survey by the Real Estate Alliance published on Monday. Picture: Andrew Matthews/PA Wire

Landlords exiting the property market was responsible 60% of second-hand house sales in Cork county in the first quarter of the year, according to a survey by the Real Estate Alliance published on Monday.

The Q1 REA Average House Price Index found 20% of second-hand house sales in Cork city, and 60% of sales in the county, were attributed to landlords leaving the market.

The price of the average second-hand three-bed semi in Cork city increased by 1.2% to €415,000 in the first quarter of the year, and by 1.1% to €270,153 in Co Cork, according to the latest national survey by Real Estate Alliance.

In Kerry, average second-hand three bed semi prices increased by 2.7% to €385,000. In Limerick county, prices were up 0.9% to €280,000 while in the city they rose 1.4% to €350,000.

In Co Waterford, prices were up 2.5% to €302,500 and up 1.5% to €350,000 in Waterford city. In Tipperary, prices were up 2.2% to €286,250, while in Clare they were unchanged at €325,000. In Galway, prices were up 0.8% in city and county to €398,000 in the city and  €312,480 in the county.

Selling prices in Dublin city rose by 1.6% in the last three months, with the average three-bed semi in the capital’s postcode areas now selling at €595,453, a 6.6% annual rise.

Nationally, the actual selling price of a three-bed, semi-detached house across the country rose by 1.5% in the past three months to €364,747. This represents a 7.67% annual rise – slowing gradually from the 9%  increase registered six months ago.

The Q1 REA Average House Price Index shows the average time taken to reach sale agreed in Co Cork over the quarter was four weeks. 

“There continues to be strong demand for both second-hand and new homes, which is reflective of an increase of new home developments coming on stream,” said Michael O’Donoghue of REA O’Donoghue & Clarke, Bantry.

Mr O'Donoghue predicted prices will continue to increase in the second-hand market. 

“Demand is currently strong for all property types throughout the city and county. However, it is clear that the new rent controls will begin to have a detrimental effect on the future rental market once notice periods expire, due to landlords having issued notice to their tenants prior to the implementation of same.” 

Agents report that prices in Charleville rose by 1.1% this quarter to an average of €237,500.

Additionally, the survey found A-rated BER properties are commanding 10% price increases in the city and 15% across the county in comparison to C-rated properties.

The REA Average House Price Index concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.

With energy prices coming into focus, agents are reporting that there is a renewed focus on heating costs, with the A-rated v C-rated BER price premium rising to 13% from 10% at the end of December.

Selling prices in Ireland’s major cities outside Dublin rose by 1.2pc to an average of €378,250 – a 6.5% annual increase, with homes selling in four weeks on average. Homes in the country’s large towns rose by 2% this quarter and 9% annually to an average of €281,287, while prices in commuter counties rose by 1pc to €377,185.