Demand still outstripping supply

SHORTAGE of supply of secondhand and new homes in Cork city’s western suburbs is continuing to drive up prices.

Forecasts for price inflation for houses in Cork are put at 10%. But already in February this level of inflation can be seen in some second hand sales, and strong price hikes in new stock, as well as in a few well-located city suburban schemes.

The strong prices may tempt a number of intending vendors to go to the market before a surge in supply later in spring, hoping to capitalise on lack of choice and head-to- head bidding, suggests Dennis Guerin, director of Frank V Murphy and Co estate agents.

The Douglas area has a supply of new homes in several developments (and lots of available rental stock as well) but prices are climbing up, by as much as €20,000 per unit since the start of the year.

In the western suburbs, the absolute lack of any new supply has put second hand sales through the roof.

Of course, if enough vendors come forward in the next few weeks to meet demand, prices may begin to level off.

However, Mr Guerin accepts that likely vendors may hope to benefit from further price inflation by later in 2003, and might hold back on selling.

Examples of recent sales, nearly all to investors, include a three-bed semi-detached townhouse in McCurtain Villas off the Bandon Road, sold by Hamilton Osborne King for around €300,000, and a clutch of western suburbs houses sold for well over their guides.

Sales with Dennis Guerin and Nicola Murray of Frank V Murphy and Co include a three-bed townhouse at Wilton Court, asking €250,000 and selling for €320,000.

Two separate two-bed apartments at Victoria Court at Victoria Cross, asking €220,000, made €250,000 each.

An older style terraced three- apartment investment property at no. 3 Fern Villas on Sheares Street with an income of €25,000 pa asking €320,000, sold at private auction for €440,000.

Demand is far outstripping supply since Christmas, says Mr Guerin.

Examples of investor demand from late 2002 include Roycourt, a three-bed home with attached garage in need of upgrading: its guide was €250,000, and it sold for €335,000. A mid-terrace three / four-bed home near UCC at 15 St Vincent's View College Road, with 950 sq ft of space, had a guide price of €225,000, but was sold for €304,000.