'Alarming' surge of house  prices by up to 10% caused by pent-up demand

Incoming president of property body SCSI says chronic shortage isn't sustainable 

TJ Cronin, incoming president of property body the SCSI, says the three areas which need to be addressed are access to zoned and serviced development land, the supply of affordable and viable housing stock, and the availability of competitively priced mortgages for buyers and finance for builders.

MANY house sales in the Cork residential market have gone for 10% or more over their guide prices in the past year, via both 'virtual viewings' and in-person visits,  despite the impact of Covid-19, due to pent-up demand, and shortage of supply.

That's according to TJ Cronin, incoming president of property body SCSI, who expressed alarm at the level of approved bidders going head-to-head with one another to secure scarce housing stock, and driving up prices.

The Cork city based estate agent, now representing a professional agency with 5,000 members at the frontline of the Irish property market, has used the office to support the ESRI's call earlier this month for Government to more than double its investment in State provided housing, from €2bn to over €4bn, given historically low interest rates.

"Extraordinary measures are required to deal with the crisis," he said, noting the SCSI has been calling for a major Government-funded house building programme involving both the private and public sectors for some time.

"Even at the pre-Covid rate of output — circa 20,000 units — we forecast that supply and demand would not be in equilibrium until 2031. So unless drastic action is taken, tens of thousands of people hoping to buy an affordable home will face another decade of despair,” Mr Cronin asserted.

TJ Cronin's home pitch is Cork city and county. He works as Residential Manager with long-established Irish & European, whose co-founder Joe McCarthy was president of the SCSI's forerunner, the IAVI, in the 1990s. He takes up the SCSI chain of office just a year after the highly-regarded Joe McCarthy stepped back from active involvement in the estate agency business.

He notes very strong sales across a wide range of property types in Cork city and commuter towns, is driving up values.

"The number of well-prepared and funded purchasers who have been unsuccessful in their efforts to purchase during the last few months is alarming," he stated.

"It wasn't unusual to have four or five approved or 'ready to go' bidders vying for the same property. Cork is proving to be a popular draw for employment and for those looking to make a new home. This is resulting in strong demand within the market.”

Saying a priority for the SCSI's future roadmap is sustainable development, Mr Cronin said the three areas which need to be addressed are access to zoned and serviced development land, the supply of affordable and viable housing stock, and the availability of competitively priced mortgages for buyers and finance for builders.

“Estate agents all-round the country are seeing first-hand the effects of the chronic shortage of property. The current situation isn’t sustainable and if the ESRI believes the state can manage the extra borrowing, surely now is the time to act. What we need now is long-term strategic vision, not short-term reactionary measures,” Mr Cronin said.

The 45-year old SCSI president is a native of Drinagh, West Cork, is married with two children, is a registered valuer, and a previous chair of the Southern Region of the SCSI.

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