Limerick house prices continue to rise amid concerns over supply
HOUSE prices in Limerick increased by 1.4% in the first three months and are 4.7% higher year on year, according to the Sherry FitzGerald price barometer.
The estate agents, led in Limerick by Ailbhe O’Malley, say “growth remains strong”.
Ms O’Malley says Limerick is doing incredibly well with so many new people arriving into the market every day.
“Most of the multinationals in Limerick are expanding and many of these buyers are coming into Limerick with well-paid jobs and are hoping to put down roots here,” said Ms O’Malley, who was speaking before Monday’s announcement of a €630m investment at Analog Devices’ Limerick base. An extra 600 jobs will be created at its European headquarters in Raheen - bringing the total workforce to more than 2,000.
Ms O’Malley said the economic and geopolitical challenges experienced in 2022 look set to continue throughout 2023.
“Elevated interest rates resulting from stubborn inflation, and war in Ukraine are looking to be elements of the European economy over the medium term. Despite this, Ireland has proven to be an outlier in terms of economic performance.
“In first quarter of 2023, the housing market trends from the previous year have persisted. This includes a strong market for sales, although with moderating price inflation, as well as a persistent dysfunction in the rental market,” said Ms O’Malley.
The Sherry FitzGerald market report shows transaction activity in the residential market exceeded the pre-pandemic and 2021 levels, with brisk activity in both the second-hand and the new homes markets.
Final figures from the Property Price Register (PPR) show that total transactions in Limerick, excluding block sales and the purchase of new social homes, increased by 9% to 2,170 in 2022.
Although the rates of house price inflation observed in 2021 and 2022 have started to ease off, “growth remains strong”.
In Limerick, prices increased by 1.4% over quarter one, and are 4.7% higher year-on-year, according to the Sherry FitzGerald price barometer.
Undersupply remains to be a key issue facing the market, with no solution in sight, said Ms O’Malley.
“This is evident in that only 575 properties were advertised for sale in County Limerick in January 2023, representing 0.7% of the total housing stock in the county.
“There are concerns about a potential contraction in housing completions and an estimated loss of 15,000 tenancies in the rental market this year. Ireland requires over 52,000 units to be constructed annually for the next decade to restore balance to the market, making any reduction in output levels concerning.
“The Government's proposed tax breaks for small landlords are welcome, but further immediate action is required to address the impact of private landlords leaving the market. We can no longer describe this as a housing crisis, it is a housing emergency and needs to be treated as such.
"The Government successfully steered the country through the Covid emergency, we now need the same approach to the housing emergency,” concluded Ms O’Malley.