Chronic lack of supply to ease as schemes kick off
THE MARKET EAST Cork has been crippled by a chronic lack of supply of housing stock since the crash. This should start to turn around slowly this year with the long overdue commencement of a few new schemes and more planning applications going in.
The introduction of these houses should bring more stability to values in the area, which rose by 7pc last year. Shane Russell of Russell Estate Agents Ltd says that prices are still well off where they were in 2007 but they are recovering slowly. The average value on a three-bed semi in town is now €230,000.
First-time buyers are struggling to get on to the property ladder because high rents are making it impossible to save.
“Rents are continuing to rise and are at levels that we never thought we’d see,” says Russell. “A three-bed semi in Midleton is looking for €1,200 a month. There is a distinct lack of rental accommodation on the market throughout the country, and east Cork is no different. The fact that the economy has seen a recovery and the creation of a large number of new jobs in Cork in recent years has resulted in an influx of people means there are just not enough units.”
Demand has been highest in the areas closest to Cork city like Midleton, Carrigtwohill, Cobh and Glanmire, according to Russell. Outside of the towns the areas of Whitegate, Aghada, Rostellan and Mogeely have also been selling well. Russell predicts a further increase of 4pc in house values in the coming year. “While there is planning in process for a number of new housing schemes, it is likely to be late this year or early next year before sales will commence on these schemes.”