New homes cool inflation in Cork’s western suburbs
CORK CITY WEST SUBURBS AVERAGE PRICE: €378,000
Bishopstown, Wilton, Ballincollig, Ovens, Waterfall, Model Farm Road
Change: 5%
One Year Forecast: 5%
Assessing Agent: Savills
THE MARKET
The west suburbs provided a bright spot for new-home provision, with more new developments coming on stream and further easing the pace of annual price inflation. This fell from 8pc in 2019 to 6pc last year and prices are now up 5pc on January 2020. The average home price in the area now stands at €378,000.
At Model Farm Road, the Reldare scheme offers three and four-bed houses from €420,000, although prices increased in latter phases.
Meantime, Heathfield around Ballincollig has three and fourbed semis and four-bed detached homes on offer. Prices had originally kicked off here at €375,000 for four-beds and €320,000 for three-beds, but are now revealed via application only, suggesting they have risen.
While the supply of new homes was enough to head off the worst of shortage-induced inflation, supply across the board is still back by about 10pc. As a result, local expert Michael O’Donovan of Savills is predicting another 5pc increase in 2021.
“This is a much younger area than other city segments and big with first-time buyers. Covid19 means potential buyers have boosted their savings because spending on holidays and socialising has been curtailed. Mortgages are obtainable and they are availing of the extended Help to Buy Scheme, which is worth up to €30,000. On the downside, there has been no supply of new apartments and downsizing is a challenge as a result.”
O’Donovan believes Waterfall will provide the best value for buyers in the coming year. The top end of this market is being tested by a new scheme of luxury homes by O’Callaghan, with 28 detached homes of 2,800 sq ft to 3,200 sq ft set to be aimed at the luxury trade-up market. A-rated homes of this size just haven’t been available here before. These could be offered at over €700,000. There has been a slight lift at the very top end where homes are selling at up to €1.35m. These properties are expected to go on to €1.4m this year.
You can expect to pay €345,000 today for an average three-bed semi, while four-bed detached homes have crashed through the €600,000 barrier in the last year and now stand at €614,000 for an average version. Four-bed semis stand at €378,000 and are expected to end 2021 just under the €400,000 mark.