Liam Hargaden, Jordan Auctioneers
We saw price increases of as much as 10% for certain property types within the Kildare area in 2017.
There were a number of factors driving this, mainly the obvious ones, which were a lack of supply and strong demand.
We came across a large proportion of first time buyers who are working in Dublin, but are being priced out of the Dublin market and therefore have to commute to work. They are then choosing what part of the commuter belt they can afford, which is usually somewhere along the M7 or one of the other national routes to Dublin such as the M4.
Properties in towns with commuter rail and bus links would also benefit from this effect. There are a number of major local employers within our catchment area including Pfizer, Kerry Group, Oral B, Intel, and Hewlett Packard to name a few, which are benefitting the area with employees locating close to these employers.
The market locally is suffering from a lack of availability of stock. There are a number of developments currently underway across Co. Kildare and the Help to Buy Scheme for first time buyers along with energy efficiency is helping keep demand and prices for new homes high.
This is having a knock on effect of bringing some second hand stock to the market as people look to either trade up or trade down but demand continues to outstrip supply.
At present in Newbridge, sewerage treatment provisions are at capacity. This sewerage treatment is currently being upgraded and the majority of new developments planned are contingent on this upgrade.
There are some new homes currently being constructed and available in Newbridge, but these are under pre existing grants of planning permission with existing sewerage provisions.
In the 2012 Finance Act, an incentive for investors was introduced whereby a property purchased between December 7 2011 and December 31 2014 would be exempt from CGT (Capital Gains Tax) upon disposal if held for exactly seven years.
The mandatory holding period was reduced from seven to four years in the 2017 Finance Bill meaning there is now a three year window in which the property can be disposed of and benefit from full exemption.
Subject to meeting other conditions for relief, a property purchased prior to January 1 2014 may be eligible for full CGT relief if disposed of on or after January 1 2018.
As a result of this we would foresee some second hand housing stock coming to the market as investors look to take advantage of this relief.
The vacant site levy that is coming into effect this year should create an increase in supply of development land to the market over the coming years as it was introduced to discourage landowners from holding banks of land that are suitable to be built on.
Predictions for the year ahead: We would foresee increases of between 5-10% this year in our area as supply remains constant and demand continues to increase. The market is still in recovery mode with prices back at a more realistic level compared to the heights of 2006/2007 and lows of 2012. Prices are still approximately 25% lower now than they were at their peak but the market is very different this time.
Banks lending criteria is a lot stricter with couples being able to borrow between 3.5 – 4.25 times their income which is significantly lower than the lending multiplier that applied during the height of things and 10% deposit for first time purchasers and 20% deposits for other purchasers.
Properties Currently Available c. €200,000 bracket with Jordans:
- 4 Willow Road, Connell Drive, Newbridge - 3 bed semi-detached home on an end site in a quiet cul-de-sac in a convenient location on the edge of Newbridge. Asking Price €199,500.
- 39 Pomeroy Park, Rathangan, Co. Kildare – a superb 3 bed semi-detached residence with attic conversion and 2 wooden chalets in a modern development in Rathangan. Asking Price €215,000.
Check out our website www.jordancs.ie for more similar properties to the above, which are due to come on the market in the coming weeks, so keep watching.
Thinking of selling and want some free independent advice contact Liam Hargarden 086-2569750, email@example.com or Mark Neylon 085-1226720, firstname.lastname@example.org