Prices up as supply lags

CORK’S new homes market is about to surge - but prices are still expected to grow by up to 10% during 2003.

That forecast for price inflation in the greater or metropolitan Cork area comes against a backdrop of a 6% house price rise forecast nationally by members of the Irish Auctioneers and Valuers Institute, reflecting a local gap between supply and demand which is likely to continue during the year.

Already, some new house developments have seen prices rise by over 20,000 since the start of 2003 and second-hand prices in the western suburbs have taken a swift start-of-year hike as supply remains tight.