Kinsale sees 40% jump in house prices in one year

THERE was a 40% hike in property prices in Kinsale in the past year.

The prices, as revealed in a new property price register from the CSO, compared the twelve months up to July 2016 with the same period in 2015.

In 2015 the average sale price of a house in the town was €255,714 – but in 2016, that price jumped to €359,259 – a 40.5% increase.

As a result, Kinsale was seen as the third most expensive postal district outside of Dublin – behind Greystones and Bray, both in Co Wicklow.

The hike in prices in the town meant that Kinsale, the CSO reports, was also the area showing the greatest jump in average price, for the 12 months surveyed. Second to Kinsale was Dunboyne in Co Meath, where average prices increased by 33.3% between the two periods.

Cahir in Co Tipperary saw prices fall the furthest – down by 15.% for the same period.

The report found significant differences in house prices across Ireland’s regions. Generally, the further from Dublin, the slower the house price recovery. However, the south-west region of Ireland – including West Cork – was described as ‘a notable exception’.

‘House prices in the south-west fell less than any other region (including Dublin) during the economic crisis,’ it added. ‘Although house prices in the mid-east initially led the recovery outside of Dublin, from November 2015 onwards the south-west has seen the fastest growth in house prices. Currently, house prices in the south-west have recovered almost to the same extent as in Dublin, recovering to 91.9% of their January 2005 base period value (compared to 92.9% in Dublin).’

Kinsale estate agent Victoria Murphy told The Southern Star that ‘everything is being snapped up’ in the town, including a new estate of homes with prices around €500,000, which she attributes to a general shortage of supply.

‘There are absolutely no homes to rent here, which is very unusual,’ she said, adding that last year was a busy year, as banks sold off homes in many cases, ‘but that seems to have calmed down now.’

The presence of pharma Eli Lilly nearby, as well as the big firms in Ringaskiddy, have all brought a lot of new buyers to the town, who prefer the ‘resort’ feel of Kinsale, to living in Cork city or its suburbs, she added.

But she said she felt that prices would settle somewhat in the short-term. ‘There are about 1,000 new homes planned for Kinsale over the next two years, and four to five developments are currenlty breaking ground. That should see prices calming down a lot.’

Overall, the report found that Co Cork had a much higher level of market activity than any other county outside Dublin.

In 2015, there were 4,314 stamp duty returns filed for Co Cork, and it also had the greatest number of new dwellings (287) purchased in 2015.