A new study based on an analysis of the Property Price Register shows that the number of property transactions in Cork is at a three year high.
Overall sales are up 17.5% for the first nine months of the year compared to the same period last year while transaction values are up 10.6%.
The study shows that the number of transactions in Cork is increasing at an even greater rate than Dublin where the number of transactions rose by only 13%.
While the study – which was carried out by MyHome.ie – shows that transaction values are increasing, they are still down 14% on the €300m which was spent on property throughout Cork in 2010.
Angela Keegan, Managing Director of MyHome.ie said that while it was heartening to see the level of transactions in Cork rise, the increase was coming off a low base.
“While the latest figures bode well it is very much West Cork and Cork County that are driving the recovery. In West Cork, the number of transactions is up by 19.6% while the value of those transactions is up by almost 23%. Kinsale was the star performer here with sales up 61%.
“The picture is also very positive in Cork County where the number of transactions is up 20% and values are up 13%. In the city many agents are telling us there is a shortage of family type homes and this is an issue in parts of Dublin and Galway also,” Ms Keegan said.
According to the study, while the number of transactions is up by 10% in the city, transaction values are down by 5%.
Ms Keegan said there is a feeling that Cork prices are following Dublin’s lead and that while the value of transactions in the City is down, the cash investor is back looking for inner city properties and apartments.
“We are hearing there is a shortage of stock in areas like Rochestown, Douglas, Blackrock, Ballinlough, Bishopstown and the Model Farm Road. There is also a general shortage of trader upper houses. While properties in Ballincollig are very much in demand due to the proximity to the city Glanmire and Carrigaline are not far behind.
“To increase the supply of homes we need the country’s banks to address the mortgage arrears situation and we need local authorities to ensure new developments meet existing and future demand. The recent price increases we have seen in Dublin are not sustainable in the long term and we don’t want to see them replicated in Cork and other cities,” Ms Keegan concluded.
You can see more on the study at www.myhome.ie/corkanalysis