House prices in city rise again
The price of the average second-hand three-bedroom semi-detached house in Cork city has risen by 1.2% to €405,000 this quarter, a new property report has said.
Across Cork county, prices over the past three months have increased by 2.4% to €243,562, and the average time taken to sell is five weeks. In the city, the average time taken to reach sale agreed is four weeks and 60% of sales are now to first time buyers.
The Q3 REA Average House Price Index released on Monday concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.
Michael O’Donoghue of REA O’Donoghue & Clarke, Cork, said: “There continues to be strong demand for both second-hand and new homes which is reflective of an increase of new home developments coming on stream. Overall demand is strong for all property types throughout the city and county. It will be interesting to see what impact the new Rent Pressure Zones controls will have on landlords and the disposal of properties before the end of the year.”
The announcement of a nationwide rent pressure zone has triggered a sharp increase in landlords exiting the housing market, the survey showed.
The Government’s announcement in June was followed by an immediate spike in landlord sales in many areas now included in the legislation.
REA agents in Carlow, Kerry and Waterford have reported that more than 40% of their sales are attributable to landlords in the past three months – with that figure rising to 60% in Limerick city and 80% in Nenagh.
The REA survey also found properties with a BER rating of A commanded an average 17%premium over C-rated stock – reflecting the rising attractiveness of retrofitted homes.
The actual selling price of a three-bed, semi-detached house across the country rose by 1.6% in the past three months to €353,458, a 9.1% overall rise annually.
The rate of increase in Dublin has more than halved in the past three months, with REA agents reporting a marked drop in viewings in the capital and homes now taking five weeks or more to reach sale agreed.
Selling prices in Ireland’s major cities outside Dublin rose by 2.2% to an average of €368,492 – an 8% annual increase.
Homes in the country’s large towns continue to show growth nationwide, 2.2% this quarter and 10.7% on last September to an average of €269,199.