Property Focus: The perfect storm that's hitting Killarney's housing market
Househunters are seeking out Killarney to improve their quality of life. File Picture Dan Linehan
The dynamic of the Killarney property market has been fundamentally changed by the influx of returning locals who have been prompted by the Covid-19 epidemic to seek an improved quality of life on and around the shores of Lough Leane.
That’s according to Michael Coghlan of Sherry FitzGerald Coghlan who says that in 30 years of auctioneering this is the biggest change he has seen. “It’s a perfect storm — you have pent up demand and a supply shortage and then you have people returning to the area with big equity looking to buy property.”
He says the biggest impact has been on the higher end of the market — because most of these buyers are spending over €400,0000 on large detached family homes.
“Every week we are getting enquiries from buyers in Dublin planning to sell up and move home and from ex-pats in the UK. We have had buyers from all four continents, from places such as Dubai, California and Bordeaux as well as from London and Dublin.
He says that before Covid-19, returning buyers might have accounted for 5% or 6% of sales, but now the figure is up to 15% or 20%. Judging by the amount of inquiries he is still getting, he doesn’t expect the trend to change in the near future.
Estimating that there have been increases of 15% in prices at the higher end of the market Mr Coghlan says the price of small holiday boltholes in the area increased dramatically during the year, although the demand for these types of properties has now eased off.
Covid has also brought an increase in retirees purchasing in the town, which according to Mr Coghlan has contributed to first-time-buyers being priced out of the market. “Their only options are to move to villages outside Killarney or buy doer-upper terraced properties.”
The key issue causing the supply shortage is lack of new development. Although the greater Killarney has a population of around 15,000, it has very little new development and Mr Coghlan expects there will be fewer new houses available in 2022 than in 2021.
“It’s not economic for developers to build — the margins aren’t there because of the cost of land, labour and material.’’
Tadgh Gallivan of Property Partners Gallivan is of the same opinion. “It is a sad looking market because of the lack of supply,” he says, adding that builders say that prices are not high enough to justify construction.
Mr Gallivan is also seeing a flood of returning locals and recently sold No 2 Bluebells Grove, a detached five-bed house to one for €622,500 and another for €600,000 at 16 Madam Heights in Aghadoe.
He says that the demand from returning buyers means that he typically has a waiting list of 15 or 20 buyers who want to buy in Killarney. “And if a house is priced right and in good condition — you could get 20 viewers a day and sell it in a couple of weeks.”
He says he is seeing first time buyers having to move out of town to villages such as Kilcummin, Milltown, Firies and Barraduff. There’s little available for under €300,000 in the town, he notes, adding that the very scarce second-hand three-bed semis in Killarney are now selling for €300,000 to €350,000.
THIS four-bed detached house, No 6 Aghadoe Woods, Barleymount, has the space, large garden, and mountain views that many buyers moving back to Killarney look for. Situated in a cul de sac of seven large 2004-built detached houses around 8km from the town, it’s on the market with Sherry FitzGerald Coghlan who are guiding it at €475,000.
“It’s an exceptionally well-presented property on an elevated landscaped site in Aghadoe with southerly views towards the MacGillicuddy Reeks mountain range,’’ says auctioneer Michael Coghlan adding that it has over 3,200 sq ft of living space and is on a site of almost three quarters of an acre. He says the location at Aghadoe, within a 12 minute drive from the town centre, is extremely sought after. “This offers good value for a spacious detached house in Killarney,” he adds.
: Has all the space city buyers want for a lifestyle change.
At the top end of Killarney market, No 9 Bluebells Grove, Countess Road is a stylish, three-storey four-bed detached house.
Selling agents Property Partners Gallivan earlier this year sold No 2, a nearby property in the same small 10-house development, to a returning local for €622,500 and auctioneer Tadhg Gallivan is expecting this one to attract similar types of viewers.
Ultra-modern and very spacious with over 2,500 sq ft of living space, the property was bought new by the current owner in 2017. Fitted with Ecotherm triple glazed windows, air to water heating and high levels of insulation. “It’s spacious and luxurious with a very high-quality finish and in a private cul de sac just 500 metres from the centre of town,’’ says Mr Gallivan.
: Stylish, spacious and central.
THERE is quite a lot more to ‘Killeen’ at 11 Rock Road in Killarney than its mid-terrace front façade might lead you to expect. Although it looks quite small from the front, it’s a four-bed house with 1,150 sq ft of living space and also has a very long, separate garden at the rear.
The exposed stone walls on the inside indicate that the property could be around 100 years old. Quirky, with timber beams and an open tread staircase, it is in need of modernisation. Seeking offers of €320,000, DNG agent Ted Healy says being a short walk from the town centre, is a very strong selling point. Mr Healy adds that because of its central location and guide price, the property is attracting good viewings from young buyers.
: One of a small number of properties available in Killarney at this price.
THE four remaining three-bed semis at Ceide Spris at Park Road seem to be some of the only new properties currently being advertised in the town of Killarney.
They are the last ones left in a 19- unit development launched by auctioneer William Hennigan this year.
“The first houses released at Ceide Spris were mid-terraced properties which sold very quickly off the plans,’’ says Mr Hennigan explaining that he has already sold two three-bed semis in recent weeks.
“These will be finished to a high standard and will include flooring, tiling, fitted kitchens and wardrobes.” Noting that new three-bed semis are very scarce, he says they have been attracting interest from local buyers as well as returning locals.
: A pretty rare opportunity to buy a new three-bed semi in Killarney.
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