Price of three-bed semi-detached home in Cork up 3.7%

The price of the average three-bed semi-detached house in Co Cork has risen by 3.7% in the first quarter, while the equivalent price increase for a similar property in Cork city in the same period is 1.75%.

The REA Average House Price Survey for the first three months of this year also found that the average house in the city takes just three weeks to sell, with 60% of purchases completed by cash buyers.

A three-bed semi now costs an average of €290,000 in Cork city — the highest average amount for such a property outside of Dublin City and south Co Dublin.

The average cost of a three-bed semi in Cork county has increased 3.7% in the first quarter of this year to €126,000, still below the average cost for similar properties in other counties such as Clare, Galway and Kerry.

According to the REA, while prices have risen slightly by €2,706 (up 1.31%) to €209,559 in the commuter counties and in main cities such as Cork and Galway, these increases are confined to the few towns that have new developments on the market.

Michael O’Donoghue from REA O’Donoghue Clarke in Cork city said there is strong demand but limited supply in mature and popular residential areas.

“We see a steady increase in values but the Central Bank lending rules are having an increasingly detrimental impact on the market, in particular the 20% deposit requirement over €220,000,” he said. “This is leading to little or no building and affecting first-time buyers with knock-on effects in the rental market.”

“Lack of supply of suitable housing is the paramount issue nationwide and, while we have had rises in many areas, they are primarily driven by buyer competition for low supply.”

With prices rising by 5.1%, and viewings up substantially, Limerick was Ireland’s fastest-growing city in the first quarter of 2016.

As for the six-week average sale time, that is also the average for the rest of the country, while the average sale period in Dublin city and county was eight weeks.