Cork county sees highest house price increase in latter half of 2021
The overall average increase in property prices for 2021 was just short of 12%, with great variations across the country, according to the latest Residential Property Price Barometer by IPAV, the Institute of Professional Auctioneers & Valuers.
Capturing house prices actually achieved by auctioneers for three- and four-bedroom semi-detached homes and two-bedroom apartments, the report shows that Cork county saw a 8.33% increase in the three bedroom category in the latter six months of the year (up to €260,000 - €2,509/sq mtr), the highest in the country, 3.61% for 4-bedroom houses and 3.38% for two-bedroom apartments.
Providing a county by county breakdown for each property type the latest barometer records prices in the latter half of 2021 and compares them with prices in the first half of the year.
Cork city saw a 2.8% increase in the three-bedroom category in the latter six months of the year (€312,500 - €3,094/sq mtr), the highest in the country, 4.55% for 4-bedroom houses and 2.91% for two-bedroom apartments.
For 3-bed properties, Limerick saw a 4.57% increase (€257,500 - €2,565/sq mtr); Waterford recorded a 4.84% increase (€216,667 - €2,320/ sq mtr) and Tipperary a 4.41% increase (€177,500 - €1,513/sq mtr).
SCARCITY OF SUPPLY
Pat Davitt, Chief Executive of IPAV said during 2021 in particular the differential between asking and achieved prices was crucial, given the intensse demand against a scarcity of supply, leading to a trend whereby agreed prices often exceeded asking prices, sometimes to a considerable degree.
“However,” he said, “there is a myriad of factors impacting the market, with many buyers, particularly those with family connections to the country, now seeing living in the country as a realistic, more affordable option given the new hybrid working arrangements.”
He said coastal properties or unique properties are now attracting greater interest. “Hence we are seeing the higher increases this time around in areas like Wexford, Clare, Mayo and Donegal”.
And he said while prices are now very close to 2006/7 levels the market is drastically different.
“At that time there was no shortage of supply, we were building 93,000 units per year. There was excessive lending with banks often approving several prospective buyers for the same property. They ended up competing against each other, thereby pushing up prices.
“In contrast what we now have is a shortage of supply and very tight lending practices, with the Central Bank of Ireland’s macroprudential mortgage rules. Many properties are being purchased from savings and parents are contributing hugely to deposits for young buyers.”