The Kerryman (South Kerry Edition)
HOUSE PRICES SPIRALLING IN KILLARNEY AND KENMARE
PROPERTY prices in Killarney and Kenmare are spiralling upwards faster than almost anywhere else in Ireland.
Figures from the Central Statistics Office show house prices in the two towns – both tourist hotspots favoured by wealthy foreign retirees – surged by a massive 25.4 per cent in the last 12 months, the fifth highest jump recorded in any urban area outside Dublin
The rocketing prices in Killarney compared to growth of just seven per cent across the rest of Kerry.
The massive surge in prices – which is being linked to an almost total lack of new housing being built to meet soaring demand – means many young families have been priced out of the market, with even the new First Time Buyers Grant, announced in Tuesday’s budget, unlikely to be of much help.
Even though many prospective buyers in Killarney and Kenmare have managed to save money in recent years, the competition from Irish investors and wealthy overseas buyers – many seeking retirement or holiday homes – is making it almost impossible for young first time buyers in the area to get their feet on the property ladder.
Killarney Auctioneer Mike Coughlan said the core of the issue is the lack of new houses and that much more needs to be done to stimulate construction.
“It is a pure supply issue. There has been nothing new built in Killarney (in terms of housing developments) in the last 10 years,” said Mr Coghlan.
“What is needed is incentives for builders to start building new houses. If I had 30 three bed semi-ds I could sell them in the morning,” he said.
PROPERTY prices in Killarney and Kenmare are spiralling upwards and are now among the fastest rising in the entire country.
While the average cost of a home in Kerry rose by 6.9 per cent - according to the latest Daft report – the CSO’s Residential Property Price Index revealed that house prices in Killarney soared by 25.4 per cent.
The RPPI monitors and compares property prices in each of the 139 Eircode Routing areas.
The massive increase in the V93 Eircode Routing area – which covers the Killarney and Kenmare region – was the fifth highest recorded outside Dublin last year.
According to the RPPI figures the average cost of a house in the area in the 12 months to July 2015 was €142,600.
By the end of July this year that had surged upwards to €178,800.
What is unclear from the figures is just who is buying the properties.
Given that both areas are in the heart of Kerry’s main tourist zone and the fact that Kenmare is one of the worlds most sought after retirement destinations it is probable foreign buyers could be a key factor in the price surges.
According to Property Price Register (run by the Property Services Regulatory Authority) the number of properties (including commercial units) sold in Killarney so far this year is 176 with the most expensive a house on Countess Road that sold for €590,000.