Limerick City Suburbs: New-home schemes are a welcome boost for suburbs

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Limerick City Suburbs: New-home schemes are a welcome boost for suburbs

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2 Clifton Close, Ennis Road, Limerick was sold by Rooneys in October for €450k
2 Clifton Close, Ennis Road, Limerick was sold by Rooneys in October for €450k

Limerick City’s suburbs are seeing the arrival of some good schemes of new homes in many locations for the first time in years, particularly around Castletroy and Monaleen.

Mungret too has plenty of new homes on the way and the fresh building drive in the suburbs is badly needed, particularly given the worsening of the situation in the rental market.

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These launches have been much appreciated by younger couples in particular but have also had a cooling effect on the inflation of asking prices of second-hand homes for sale in those areas and locations in proximity. As a result, values haven’t changed much in these suburbs compared with this time last year.

In contrast, over at Raheen and Dooradoyle, largely untouched by the new homes wave thus far, prices are up in the order of 4pc, says our local expert Ailbhe O’Malley of Sherry FitzGerald..

But new-home schemes are also on the way for these suburbs over the next 12 months and so we may see a similar cooling applied to inflation in these locations this year.

For this reason, our expert is forecasting an average increase in values this year of 2pc across the board, with some locations seeing values level off and others adding value.

With generally good amounts of specialist student accommodation provided in Limerick, it is professional couples in particular who are finding it tough with rents rising and landlords leaving the market in anticipation that rent controls of the sort experienced in Dublin and Galway could be extended to Limerick.

Limerick has been hit as hard as anywhere by the rental crisis and the city really needs some apartment development in tandem with houses, says Ms O’Malley, but these are still uneconomical to build and that’s likely to remain the case in the medium term.

Three-bed semis in Dooradoyle are now renting at between €1,400 to €1,500 per month, while the four-beds are now heading north of €1,600.

Mortgage lending regulations are increasingly affecting this market as prices creep up and more buyers are affected.

Exemptions impacted the market and the early year ‘bounce’ is now a factor. As a result, Ms O’Malley believes activity will be front loaded this year.

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Overall, however, demand for homes remains solid as the local economy continues to improve along with the fortunes of employers like Regeneron and Northern Trust. Supply has not been an issue in the suburbs.

Irish Independent

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