The Property Market in Cork

Amnesiac_ie

I'm wondering if anyone on this board has any recent experience of the property market in Cork. I'm moving back to Cork in July and I'm wondering whether to continue renting or to be brave and takle the plunge and buy my first property.

I know in Dublin that new apartments in particular are being sold for prices which are approaching 1999 levels. I've been browsing myhome.ie and DAFT and the prices quoted for apartments and houses in Cork city centre still seem to be quite high.

Are properties selling for lower prices? With developers anxious to pay off loans will new apartments such as Lancaster Gate on Western Road represent better value for money? Would it be silly to ring estate agents directly with such questions?

Illkillya

Amnesiac_ie wrote: »

I'm wondering if anyone on this board has any recent experience of the property market in Cork. I'm moving back to Cork in July and I'm wondering whether to continue renting or to be brave and takle the plunge and buy my first property.

Continue renting for awhile, aside from recession issues and difficulties with bank/mortgages at the moment, property market is currently in freefall and will continue to drop due to over supply & lack of demand combined with other factors stemming from the current economic climate.

Amnesiac_ie wrote: »

I know in Dublin that new apartments in particular are being sold for prices which are approaching 1999 levels. I've been browsing myhome.ie and DAFT and the prices quoted for apartments and houses in Cork city centre still seem to be quite high.

New apartments are... being sold? I have spoken to auctioneers both in Cork and in Dublin recently, they both assure me that they are selling property still... but of course they would say that. But Dublin is a big city, so I guess there is always some market there. Regardless, the sale price is going to be significantly lower than asking price. High-end property in Dublin has plummeted, at a guess, 1999 level sounds about accurate, but low/mid range property has a long way to go still. The advertised prices have not reflected the reality. Do not pay a tack of notice to the prices on daft.ie - either for renters or for buyers. If you really want to buy something, go in with a ridiculously low offer. My advice is to hold off for another while though, there certainly won't be an increase in prices the near future but there's a good chance that they will drop significantly further. No harm in looking now though, you could find some good deals out there if you come across people eager to sell before things get worse, or people who could be tempted by a suitcase with €100k in cash.

Amnesiac_ie wrote: »

Are properties selling for lower prices? With developers anxious to pay off loans will new apartments such as Lancaster Gate on Western Road represent better value for money? Would it be silly to ring estate agents directly with such questions?

Yes, yes, and yes - of course to all three. If property sells it will be for a much MUCH lower than asking price. I have heard some very high percentages off the record from auctioneers, but they will not speak frankly to you if you ring them directly. Any decent auctioneer has no choice but to deny the reality of the property market at the moment. That's why it is pointless to have them in radio debates and stuff - it is directly in their interests to buoy the public's confidence by any means necessary. You could speak to the auctioneer about a property, get a feel for how much they are willing to drop off the asking price, then make a ridiculously low offer if you like the place.

Cork property market is much smaller than Dublin - we don't have the "dependable traffic" that they have associated with the big population and commerce. Dublin is a major European city... Cork, on the international scale, is little more than a big town. If you think about what you will "save" on rent by rushing to buy a place now... lets say 12 months at €1000 per month, = €12,000. Ignoring all the other factors like interest on mortgage, whatever property you end up buying will surely drop by €12k in value over the next 12 months. Is there some reason why you really want to buy now?

bladebrew

i agree with the above poster,there are lots of properties that builders cant get rid of,so they will have to drop their prices,i know the prices are dropping now but i think it will get worse again,
take a look at www.chap.ie aswell it was set up by the construction industry federation to sell properties specifically in cork, theres nothing spectacular on it,just new houses/apartments develolpers cant shift,

for €1000 a month you would have a huge choice of properties to rent,you could even get a 1 bed in the elysian or in lancaster gate!
the 2 beds for sale in lancaster gate start at €395,000:eek: thats mad money for that place in my opinion!

opus

bladebrew wrote: »

i agree with the above poster,there are lots of properties that builders cant get rid of,so they will have to drop their prices,i know the prices are dropping now but i think it will get worse again,
take a look at www.chap.ie aswell it was set up by the construction industry federation to sell properties specifically in cork, theres nothing spectacular on it,just new houses/apartments develolpers cant shift,

for €1000 a month you would have a huge choice of properties to rent,you could even get a 1 bed in the elysian or in lancaster gate!
the 2 beds for sale in lancaster gate start at €395,000:eek: thats mad money for that place in my opinion!

I'd agree 100%, prices are only going one way over the next 12-18 months. That price for a 2-bed flat is crazy! A friend of mine is hoping to pick up a 3-bed semi in Wilton for somewhere between 230-240K (it's dropped from a
300K+) which looks far better value with a garden, extra bedroom & no 1K service charge every year. I'm not sure why flats cost more than houses in Ireland, seems very strange to me.

bill_ashmount

If it was me i'd hold off a while. Property is still going down in Cork. Big decreases in the city and massive decreases outside the city. I saw Ard Sionach (spelling?) up in Shanakiel advertising 3 beds for about 220,000 recently, The 2 beds were valued at 320,000 for affordable housing scheme a couple of years ago. So that's already a 100,000 off and an extra bedroom

Plenty more drops to come, especially after the budget.

Look at the Elysian, can't sell them either. Hold off and rent a while would be my advise.

Bill-e

WHat about rent to buy? Is that going on anywhere in Cork?

Is it a good idea?

deRanged

There was a rent to buy scheme in Castlelake in Carrigtwohill. I don't know if anyone went for it.

dahamsta

Some houses in Tra Geal in Garryvoe are rent-to-buy, but only the apartments and end terraces they're having trouble shifting. Plus the site has been shut down halfway through, so you'd be living in a half-finished estate with no apparent schedule for reopening. I pity the people in the big 4 beds on the outside of the estate, they paid a fortune for those houses.

overmantle

I would wait for a year or so as this recession is going to last for quite a while more.

overmantle

Also, if you haven't got a house to sell, you are in a very strong position. Don't panic into buying something. You should also be able to negotiate a good rent for a while. A lot depends on what part of Cork you are interested in living in though.

overmantle

Sorry. The other thing you need to consider is new or secondhand??

dahamsta

There is an Edit button you know.

sunshinegirl

i know in some auctioneers (very well known) in cork are being put on a 3day week as nothing is shifting. a good site to watch is http://www.treesdontgrowtothesky.com/
it tells you how much property is dropping on a weekly basis and where about.

no one is paying asking prices, majority of bids are 30k under the asking price and are being accepted.Give yourself a good 6months to have a look around.

Illkillya

Also http://www.irishpropertywatch.com/ is a good one to see how the listed price of some property has changed over time. (doesn't track the sale price though)

dahamsta

sunshinegirl wrote: »

no one is paying asking prices, majority of bids are 30k under the asking price and are being accepted.

Interesting fact, have you a source for that? As far as I'm aware there's no publically available source of actual sale prices in Ireland at the moment, only asking. It's a major issue.

overmantle, it's a button with Edit on it. You don't have to be perfect to notice it, just a little bit attentive. Plus your 2nd and 3rd posts were so close together they come up with the same time. Try thinking before you post.

overmantle

Sorry dahamsta. I suppose we can't all be perfect. Thanks for the advice.

jank

It was a little anal if you ask me.

sunnyside

If your financial position allows you to buy I'd wait until the market hits rock bottom, no guarantee that will happen though, owners seem to prefer to hold on to the properties rather than sell them. The banks probably have a few re-posessed houses for sale very cheaply. I find a lot of the houses in Douglas/Wilton/Bishopstown are very old-fashioned. All desirable areas and look good from the outside but on closer inspection serious modernisation is required. Lots of the houses were built in the 80's.

Having bought my 1980's style decor house I can't move. It was a long term plan anyway so it's ok and hopefully one day I'll have money for home improvements or the bank might give me a home improvemnet loan when they've sorted out the recession;)But I'd LOVE to live in a posh Elysian tower apartment for a bit. That's where you shoud rent even for a bit, have some luxury in your life.

who_ru

seriously if i were you OP i wouldn't ever consider buying an apt. in ireland - very poor build quality - little or no sound proofing - issues with water pressure - management fees that are ludicrous but have to be paid.

speaking as an ex corkonian now living in dublin i can tell you there isn't much shifting here either - all EA's will lie to you - it's the nature of their business.

Paek 2006 prices should never be a guide on what to bid - prices were crazy then. assess the area - are there good public transport facilties (in cork probably not) - are there good schools - is traffic a nightmare - offer what you think it's worth - remember you are the market - they shaffted an entire generation on the upswing well the shoe is on the other foot now. overall i wouldn't even consider buying any property in any corner of Ireland for a long time - 12 to 18 months at least - unemployment will be higher nxt year - the banks are kidding themselves - most will be nationalised - the govt is kidding us - one day the garauntee will suffice - next day recapitalisation of 7billion should do the trick -next day set up a bad bank that should do it - tomorrow 'we have to nationalise the banks it the only solution' - the govt has suppressed the truth in realtion to banks/bad loans - it will get worse.

in short - save your cash - rent a nice place for yourself at a reduced rate - never ever listen to EAs - asking prices are in La La land as are most vendors.

shnaek

I read in the papers there at the weekend that some economists are predicting a 'suckers rally' next year. It will be interesting to see if this materialises.

Dob74

Amnesiac_ie wrote: »

I'm wondering if anyone on this board has any recent experience of the property market in Cork. I'm moving back to Cork in July and I'm wondering whether to continue renting or to be brave and takle the plunge and buy my first property.

I know in Dublin that new apartments in particular are being sold for prices which are approaching 1999 levels. I've been browsing myhome.ie and DAFT and the prices quoted for apartments and houses in Cork city centre still seem to be quite high.

Are properties selling for lower prices? With developers anxious to pay off loans will new apartments such as Lancaster Gate on Western Road represent better value for money? Would it be silly to ring estate agents directly with such questions?

Plenty of developers are hungry. Three bed semi's on the southside have dropped from 450k to about 300k.
You should get good deal, was told by an auctioneer that most properties are selling for below there asking prices.
Wouldn't touch an apartment, there are two projects stopped in the middle of construction. And plenty of newly built apartments lying idol.
There sure to drop in value alot more.

dahamsta

shnaek wrote: »

I read in the papers there at the weekend that some economists are predicting a 'suckers rally' next year. It will be interesting to see if this materialises.

Only people buying to invest or simply buying badly could be considered "suckers", and then only people playing the short- and possibly medium-term markets. Buying to live in the medium- to long-term is rarely a bad investment in the market itself, since other properties will generally rise and fall alongside your own. The only way you can get caught is if you go into negative equity and you need to borrow elsewhere. Plus of course although interest rates probably haven't bottomed, they're still pretty good and they'll come back to the current levels sooner rather than later.

(Yes, I'll buy in the next year or two. I've watched the idiocy for nearly 15 years now and I'm not going to sit around any longer now that I have a lovely wife and the prospect of kids ahead, nor am I going to play the market for an absolute trough like the aforementioned idiots. That kind of greed is what got us where we are today.)

adam