House price rise of 12% predicted in Limerick

Nick Rabbitts


Nick Rabbitts

Lisa Kearney of Rooney Auctioneers
HOUSE prices in Limerick could rise by as much as 12% in 2015, a new survey has suggested.

HOUSE prices in Limerick could rise by as much as 12% in 2015, a new survey has suggested.

According to a national survey carried out by the Real Estate Alliance (REA) on behalf of the Irish Independent newspaper, Limerick could see one of the most pronounced rises in house price across the country.

REA chief executive Philip Farrell says this shows “a welcome return to a normally functioning market”.

Lisa Kearney, Rooney’s Auctioneers, said there is an issue with supply in Limerick.

She expressed surprise at such a high projected rise, but said this could be driven by a lack of supply of housing in the city.

“In certain areas in the city there is a backlog of supply. But outside the city, in the county, it would be slow enough. I would have thought 12% is quite high. When we sold most of our units, we would be looking at a five to ten per cent rise in certain areas,” she told the Limerick Leader.

Despite this, Ms Kearney said Rooney’s Auctioneers has been “100% busier” this year.

“There has been a big difference. There is a need for good family property, but also we were just wondering if it is due to the Capital Gains move [an end to the tax relief]. January will tell a tale, but on the ground it is very positive,” she said.

A survey carried out by property website earlier this year suggested the average asking price of a home in Limerick City is now €124,000, more than 50% below the peak back in 2007.

In the remainder of the county, prices in early 2014 had dropped by 5% year-on-year, with an average price of €140,000 - 51% below peak.

A Bank of Ireland-hosted conference also suggested Limerick is the second most affordable place to buy a house, after Waterford.

The REA survey suggests the most pronounced rise in prices will take place in Westmeath (20%), with Cop Sligo expected to see the lowest rise in prices, at 4% year-on-year.