Cork county three-beds up 3.7%

THE price of the average three-bed semi in Cork county has increased 3.7% to €126,000 in the first three months of 2016, a nationwide property survey has found.

Meanwhile, the average three-bed semi detached house in Cork city has increased by 1.75% to €290,000.

The REA Average House Price Survey concentrates on the sale price of Ireland’s typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the end of Q1 this week.

The average house in the city takes just three weeks to sell, with 60% of purchases completed by cash buyers.

According to Michael O’Donoghue from REA O’Donoghue Clarke in Cork city, there is strong demand but limited supply in mature areas and popular residential areas.

‘We see a steady increase in values but the Central Bank lending rules are having an increasingly detrimental impact on the market, in particular the 20% deposit requirement over €220,000. This is leading to little or no building and effecting first-time buyers with knock-on effects in the rental market.’

The average three-bed semi nationally now costs €191,194, a rise of €2,824 or 1.5% on Q4 2015.

While prices have risen slightly by €2,706 (+1.31%) to €209,559 in the commuter counties and main cities such as Cork and Galway, these rises are confined to the few towns that have new developments on the market.

However, REA agents around the country state that many local rises are now being caused by lack of stock driving up prices.

‘We are seeing a marked absence of the 25-40 year olds at viewings in the capital over the past few months as, under the current Central Bank restrictions, they are finding it impossible to raise the deposits needed to purchase houses over the €220,000 limit,’ said REA chairman Michael O’Connor.