New homes: Savvy buyers want bang for their buck
Variety of housing types is important for a neighbourly mix.
Just because apartments are favoured by planners, and Government, as a way of getting higher-density development on scarce or pricey city land that can be serviced by public transport, that doesn’t necessarily chime with what house hunters might be looking for.
Even if it's a type or size that doesn't fit everyone, the Irish traditional three-bed semi-detached still has its legions of fans – it’s just three-beds semis are necessarily lower density than apartments and townhouses, they aren’t being supplied in any meaningful numbers, and in many locations now in any case are priced above the €450,000 and €500,000 price caps for those dependent on Government supports to purchase.
“Three-bedroomed homes remain our most-in-demand property with approximately 30% of enquiries we deal with citing a three-bed semi-d as their first preference,” reveals Elizabeth Hegarty, Divisional Director – head of new homes Cork with Savills, adding that 91% of enquiries they’ve received this year for new builds have come from First Time Buyers (FTB’s), and that FTB’s favour new builds because of the supporting incentives such as Help To Buy and the First Home scheme.
Government incentives naturally are playing an important role, “driving the focus on new homes from that first-time buyer group. Approx 85% of new enquiries that Savills deal with plan on using one or other of the Help to Buy and the First Home schemes."
Four-bed homes are outside the price range of FTBs in all nearly all developments, “while demand for two-bedroom townhouses has increased this year with individual buyers and young couples buying these as their starter home,” adds Ms Hegarty.
In Cork city and county, she says supply has strengthened considerably with a noticeable increase in first-time buyer stock and “there’s an importance on show houses on site for buyers to walk and feel the space becoming far greater. With more stock on the market, buyers are wanting to get as much of a feel for the homes and the schemes as possible,” Savills’ Ms Hegarty comments.
Continuing, she adds that “buyers are becoming more savvy with what ‘bang they are getting for their buck’ regarding PC sums and finishes etc within the house.” Also noted by home hunters are car parking/commute options for home/work life balance: “New parking arrangements on site such as limited parking spaces per house and parking off curtilage is proving a challenge especially with the shift towards plug-in hybrid or electric cars,” says Ms Hegarty.
Another challenge emerging in new homes schemes, she finds, is “the lack of trading-up stock available within new homes developments. With higher densities and smaller house types, it leaves a space for those looking to trade up to an energy-efficient home.”
Overall, the new homes’ market demand “remains very robust, despite increased supply, while sales velocities in a lot of cases will be determined by the availability of stock within the Government incentive caps,” Elizabeth Hegarty observes.
Not surprisingly, when it comes to brass tacks and hard decisions, budget drives purchasers’ criteria but “area and public transport for commuting are also very important. Schemes we are selling within easy distance of train lines are performing very well, namely Mallow and Carrigtwohill,” she adds, a point that chimes with other agencies selling east of the city also.
Train options aside, “we have seen great results in schemes within an easy commuting distance to the city centre, for example Longview in the city’s Ballyvolane where we have seen over 240 sales since initial launch in September 2024,” Ms Hegarty reveals.
Like other agents operating across Cork City and County, she agrees that “it’s great to see healthy apartment stock levels on the market under the Croí Cónaithe scheme in areas of the city such as Douglas and Blackrock, enabling a new cohort of buyers to buy a home.”
