October 27, 2021
Business News Property

Kilkenny house prices soar as ‘rural flight’ continues

The price of the average second-hand three-bed semi in County Kilkenny has increased by 5% to €232,500 in the space of just three months, a new national survey by Real Estate Alliance (REA) reveals.

Homes in the county are reaching sale agreed in three weeks this quarter, the Q3 REA Average House Price Index confirms.

The price of the average three-bed semi in Kilkenny city increased by 6.6% to €275,000 this quarter, with time taken to sell at just two weeks.

“There is a surge of interest from buyers in Dublin and expats wanting to come home,” said Michael Boyd of REA Boyd’s, Kilkenny.

“For one particular property, within three days we saw 90 mortgage-approved applications to view it.

“The reserve was 200,000, and it went for €280,000 at an online auction on Bidnow.ie.”

Callan prices increased by 2.7% to €190,000 this quarter, and the average time taken to sell remained unchanged at three weeks.

“We are still seeing a strong demand in this area as high prices in Kilkenny city are making people look for more affordable houses outside of the city,” said Robbie Grace of REA Grace, Callan.

“Poor supply is an issue for purchasers, and lack of rental properties is an issue for people thinking of placing their property on the market.”

Average house prices nationally have risen by €3,500 per month since the end of June, with selling prices in commuter areas and small towns increasing by over double the growth experienced in the major cities.

The survey concentrates on the actual sale price of Ireland’s typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.

The price of a three-bedroomed semi-detached house across the country rose by 4.1% over the past three months to €264,056 – representing an annual increase of 12%.

The biggest rises in Q3 came in commuter counties (4.6%) and the country’s large towns (4.9%) as buyers continue to move out further from the capital in anticipation of long-term remote and hybrid working situations.

They are being joined by a surge of interest from ex-pats, anxious to return to Ireland after the pandemic, with more set to return when family homes become available.

The rural and commuter area increases are double those being experienced in Ireland’s major cities, with Dublin increasing by 2.3% to €467,000 and Cork, Limerick and Galway by an average of 2.4% to €281,750.

“The survey’s average of four weeks to sell should be even lower because, while bidding is fast and furious, vendors are not rushing to accept offers,” said REA spokesperson Barry McDonald.

“With an exceptional shortage of stock, demand is being fuelled by an increase in mortgage-approved buyers on the market.

“The rural flight, which began during lockdown, shows no signs of letting up, even in the face of a return to office working.”

 

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