Location report: Kildare sales up, but supply under pressure

In property terms Kildare is still a tale of two counties, with strengthening demand to the north yet to spread south. But with new homes in particularly short supply in the main commuter towns of Maynooth, Celbridge, Naas, Newbridge and Kildare, first-time buyers in particular are likely to start looking further south to towns such as Athy and Monasterevin.

A three-bedroom semi-detached property in Osberstown, Naas, for example, can be had for €310,000. In Monasterevin, a similar sized property costs €219,000, while a four-bedroom version in Athy, at Gallowhill, costs €265,000.

According to figures from MyHome.ie, last year saw 2,237 sales recorded across the county, a fall of 2.5 per cent from the previous year.

At the top end of the market, the biggest value transaction recorded last year was the €6 million paid for the 16-acre Village at Lyons wedding venue and cookery school in Celbridge. As befits a part of the world renowned for expensive properties such as stud farms, it was just one of 10 seven-figure sales to take place in Kildare last year.

There are new homes for every budget in Co Kildare

---

Racing hearts: Kildare is tailor-made for the Sport of Kings

---

How to grow lovely lupins, cosmos and columbine for summer

---

In volume terms, this year has seen a marked upswing in activity, with MyHome.ie reporting first-quarter transaction levels up 33 per cent over the same period last year. Between January and March 2017, 574 sales were recorded in the county, with the largest sale so far this year being the €2.3 million paid for a house at the K Club's Churchfields development in Straffan.

At the time of writing, there were 770 properties advertised on the property website as being for sale in the county, with 36 new home developments listed for sale. However, with CSO figures indicating there were just 815 new builds across the county last year – up from a low of 372 in 2012 but well off the 2006 peak of 4,804 – demand for new builds remains high.

"Things are better again this year, the market has definitely improved and demand is generally good although funding can still be an issue for people in some cases," says Clive Kavanagh of Jordan Auctioneers is based in Newbridge.

“We are seeing more viewings, more sales going through and more confidence generally, so demand is very strong. Starter houses of three and four-bed semis – if you can find them – are flying out the door. Unfortunately there are very few of them around. We are seeing some new product coming to the market, in Naas for example, but by and large, there is not much going on in terms of new builds. The main issue we have in relation to starter homes is lack of stock – we have a long list of people waiting to buy.”

The problem is that the economic climate, though much improved, is not yet conducive to development, he says, even in Kildare’s strongest commuter belt towns.

“It’s a struggle for builders to get the numbers to add up in such a way as makes it worth their while. There is a public perception that there is no one to build houses anymore but it’s not that, it’s why would you build if the figures don’t add up? Even now, in places where demand is tight, if you’re a developer that bought land at the top of the market in 2007 or 2008, it doesn’t make sense to build yet, so they are still waiting.”

There are other hold ups too however, including the fact that while the road network is relatively good in the county, with the N7 and M9 the main arteries, other infrastructural developments are still required, including water and waste water treatment plants in Newbridge and Kilcullen.

As in other parts of the country, alongside pressure from strong demand and weak supply is the additional impact of new Central Bank lending rules.

"Demand is biggest for three-bedroom semis, which are affordable, but current lending rules mean banks are slower to lend above around €300,000," says Ian Smyth of Smyth Naas, which was previously Gunne.

“And €300,000 will still get you a nice three-bed semi-detached house in Naas,” he says. “At the upper price levels though it is harder because people will need to have their own resources.”

The good news however is that it looks like supply is “opening up a bit”, he says. “In just the last few weeks we’ve had a number of three-bedroom semis come on stream, very many of which were investment properties owned by what might be called reluctant historic landlords. The reason these are coming back on the market is because, finally, people are moving back into positive equity. The result is that we are seeing a number of these landlords who are tired paying out half their income in taxes and rates and want to sell up and clear their mortgages at the first opportunity.”

These properties are being bought by owner occupiers, which is good news for them, but perhaps not such good news for those who want to rent in Kildare. “The rental market here is being squeezed. Three-bedroom semis for rent are like hens’ teeth and, if you can find one in Naas, you can expect to pay €1,500 monthly, up from € 1,350 this time last year. Any time I put one on the rental market I get 20 calls straight away.”

He understands why Kildare’s towns in particular have such enduring appeal for house hunters. “If you look at Naas alone, you’ll see that it is a big town but one with a very strong sense of community. It has great shops, pubs and restaurants, and, with the opening of new schools in the past few years, plenty of choices there too. On top of all that, it’s an easy commute for those working in Dublin.”

The question for those moving to Kildare now is whether to trade that easy commute for a slightly harder one – and a cheaper house.