Not many people are aware but it is now possible to track property prices using the Eircode system. Like many things property related, the averages it gives are pretty much useless if you want a specific value for your property but in terms of seeing overall trends in property prices for a given area, it can be quite useful.
Regarding Cork, the Eircode system is broken down into a few specific areas – For example, P25 covers the Midleton area, P36 the Youghal area, P24 is Cobh whereas T12 and T23 covers Cork (city) southside and northside respectively.
If we visit the CSO website and track prices by Eircode, the most recently available data tracks the median house price in the year to April 2018. It’s important to remember that the CSO uses median values rather than mean values to calculate the Eircode figures. If you don’t know the difference between mean and median, kindly follow this link for a quick summation. Anyhow, the median property prices for Midleton, Youghal and Cobh are given as follows
Median property price Midleton – €200,000
Median property price Youghal – €148,000
Median property price Cobh – €185,000
Taking the Cork city divide of Southside / Northside, the median house price shows quite a dramatic difference between the two areas having a 43% difference which equates to €80,000;
Median House price Cork City Southside – €265,000
Median House price Cork City Northside – €185,000
In comparison, the median national house price is given as €233,000.
The CSO also breaks down the purchasing figure into the buyer type – first time buyer owner occupier, former owner occupier and non occupier. The titles may be a bit lethargic in description but fulfill their job admirably and the illustration demonstrates the buyer breakdown for three areas – Midleton, Youghal and Cork City Northside.
Finally, the CSO page also shows volume of sales by month per Eircode area ranging from January 2010 to the most recently available April 2018.
If you’re a bit of a numbers geek like us, the CSO website gives all sorts of interesting information and is regularly updated as data becomes available. To finds the average house price in a specific Eircode area, just follow this link and locate your area
Rent pressure zones were introduced under the Planning and Development (Housing) and Residential Tenancies Act 2016 and were intended to moderate increases in rent for tenants.
Currently, in Cork, there are a number of areas that are included in the rent pressure zones being Cork city itself, Ballincollig – Carrigaline and Cobh. Other towns such as Midleton, Youghal and Fermoy for example are not currently classed as rent pressure zones despite the large increases in rent in these towns.
For a town or area to be included in a rent pressure zone, two criteria must be met;
1. Rents must have increased by more than 7% in four of the last six quarters
2. Average rents in the last quarter must be above the national average as measured by the National Indicative Rent in the RTB’s Rent Index Report
The most recent RTB Index Rent Report which is for Q1 2018 put average national rents at €1,060 which was a 7.1% increase year on year and a 0.4% increase from the previous quarter.
In comparison, the following averages were given for Q1 2018 for the Cork based areas;
Cork City rents were listed at €1,075
Ballincollig – Carriagaline at €1,251,
Cobh at €1,074
The greater East Cork LEA area was lower at €892.
Thus whilst rents may have jumped in successive quarters in areas outside current rent pressure zones, they can still fail the criteria for inclusion as rents are listed as below the national average.
For areas in and around Cork City already included under the rent pressure zones, rent increases for existing tenants are limited to a maximum 4% a year. Landlords must still show show three comparable rents when writing to tenants and the proposed rent must be in line with local market rates when seeking a rent review.
The formulae devised to calculate rent increases in a rent pressure zone is as follows;
R x (1 + 0.04 x t/m)
calculations should be done working from right to left
R= The amount of rent last set under a tenancy for the dwelling (the current rent amount)
t = The number of months between the date the current rent came in to effect and the date the new rent amount will come in to effect.
m = you must enter 24 OR 12
The RTB website has a fairly comprehensive information section on rent pressure zones and the minutiae along with a calculator whereby you simply input the information to determine the potential increase in rent.
The PRTB rent indices and reports can be accessed here and make for interesting reading for anybody seeking up to date information on Irish property rental trends.
The most recent daft.ie rental report isn’t going to make pretty reading for those seeking rental accommodation at the moment. Rents have continued to increase for all types of residential property with rents increasing by 11.3% nationally.
On a more local basis, Cork County rents increased by 10.6% year on year with the average rent being €862. Cork city rents on the other hand increased by 9.3% year on year with the average rent recorded as being €1,210.
The tight squeeze on supply is continuing with just 700 properties available to rent across Munster in April 2018 which included all of the major cities – Cork, Limerick and Waterford.
Will the rental squeeze continue? Unfortunately yes. Until supply starts to pick up, the current shortage of rental accommodation is going to keep prices inflated. More houses and more apartments need to be built to ease the supply squeeze and the lead in times are obviously lengthy when planning permission and build times are factored in.
To read the full Q1 2018 Daft.ie rental report, click here.
Available since 2010, the property price register can take a bit of work to glean the information you want from it.
Composed at the minute of date, address and transaction price, there is no description of the property recorded such as square footage, number of bedrooms or site size.
If these were recorded, a more accurate and realistic comparative value could be recorded for any given area.
Still, even in it’s basic form, it’s better than nothing as we had before. Taking Youghal as an example, we can track the average property price for transacted properties in Youghal town over the last 7 years.
The collapse in house prices between 2010 and 2013 is evident with some signs of a recovery showing in 2014 and 2015. Then, house prices begin to increase dramatically again for 2016 and 2017. It will be interesting to see how 2018 fares as more properties are transacted during the year.