House sales in the Cork region increased by 17.5% in the first nine months of this year — and house prices are up by over 10%.
However it is West Cork and the county, more than the city, that is driving this recovery — with the number of property transactions in Kinsale rising 61% and the value of these sales and purchases up by 116%.
In Cork City, the value of transactions was down 5%, possibly due to a shortage of stock, say auctioneers. However, they say cash investors are back buying property in the city centre.
Overall in West Cork, the number of property transactions rose 19.6% in the first nine months compared with the same period last year, with the value of those transactions growing almost 23%, according to an analysis of the Property Price Register by myhome.ie
The website’s managing director, Angela Keegan, said property sales and purchases rose by 20% in Co Cork, while property prices rose by 13%.
Sales fell in Mallow and Midleton — traditionally two of the more popular towns in the county — but doubled in Carrigaline compared to the corresponding period last year.
“In the city many agents are telling us there is a shortage of family-type homes and this is an issue in parts of Dublin and Galway also” said Ms Keegan.
The study says property transactions are rising faster in Cork than Dublin, where the number of transactions rose by only 13%. However, these increases are coming from a lower base and they are still down 14% on the €300m spent on property throughout Cork in 2010, according to Ms Keegan.
The study says while the number of transactions is up by 10% in the city, transaction values are down by 5%.
Ms Keegan said there is a feeling that Cork prices are following Dublin’s lead and that while the value of city transactions is down, city centre houses and apartments are being bought by cash-rich investors.
She also points to the lack of property for sale in the more established suburbs.
“We are hearing there is a shortage of stock in areas like Rochestown, Douglas, Blackrock, Ballinlough, Bishopstown, and Model Farm Rd. There is also a general shortage of trader upper houses. While properties in Ballincollig are very much in demand due to the proximity to the city, Glanmire and Carrigaline are not far behind.”
Myhome.ie has said if the supply of houses is to increase to meet pent-up demand, the country’s banks need to address the mortgage arrears situation and local authorities must ensure new developments meet existing and future demand.
“The recent price increases we have seen in Dublin are not sustainable in the long term and we don’t want to see them replicated in Cork and other cities” said Ms Keegan.
© Irish Examiner Ltd. All rights reserved