Second-hand house prices fell in Limerick late last year, while new houses continued to offer good value compared to other main cities in the Republic.
Estate agents say house prices have remained static in the past year due to the temporary over-supply of new homes in Dooradoyle and Castletroy. "There has been an overhang in the market so there have been very few new sites started and developers have been trying to get rid of the houses on their books," says one auctioneer, Mr Pat Chesser.
Limerick's average second-hand house prices fell last year by almost £2,000 - from £119,172 in the third quarter to £117,261 in the fourth, according to the Department of the Environment's Housing Statistics Bulletin.
In the new homes market, the average price in Limerick was £117,678. This was less than in Galway (£141,699), Cork (£136,202) and Dublin (£184,213), and only marginally ahead of Waterford (£115,512).
For new apartments, Limerick offers the best value of the five cities. The average price for an apartment was £112,140, compared to £188,042 in Dublin, £154,275 in Cork, £151,710 in Galway, and £131,326 in Waterford.
A three-bedroom house in Limerick costs between £110,000 and £135,000, while city centre apartments are on offer from £125,000 for a two-bedroom unit at Steamboat Quay. Nearby, at Howley's Quay, apartments cost from £225,000 upwards.
The fall in prices in the second-hand market is reflected in a slowdown in sales. "A year ago, it would take three to four weeks to sell, now it takes three to four months. The 9 per cent stamp duty still applies for investors," Mr Chesser said.
Sherry FitzGerald has second-hand houses on offer in the city from £90,000 for a three-bedroom semi-detached in Castletroy to £395,000 for a five-bedroom house at Lansdowne Terrace on the Ennis Road.
Mr Des O'Malley of Sherry FitzGerald said the current over-supply of new houses would work its way through. "There has been a good take-up of them and prices will go up when the supply evens out. Demand is very, very solid."
He added that a lot of this value was being realised by people "following careers", moving from other parts of the State to take up jobs in Limerick.
"People move to Limerick because of industry and work, they move to Galway because of lifestyle. But aesthetically, I think Limerick has dramatically improved."
Much of the new commercial development in Limerick is centred on the Shannon. The city's next hotel, the 138-bedroom, 16-storey Clarion on Steamboat Quay, will be the State's third-highest building. The operator, Choice Hotels International, is expected to open the four-star hotel in the summer of 2002.
On King's Island, meanwhile, an application has been made by King's Island Development for a five-storey, 107-bedroom hotel, facing on to the Abbey River. The same developer has permission to build a scheme incorporating apartments, student units, a leisure centre and a 13,000 sq ft food hall.
Planning permission for a £6 million, 101-bedroom hotel on King John's Castle was recently refused but a fresh application may be made as the area is zoned for hotel use.
Major shopping developments are also beginning to take off. At the Crescent Shopping Centre in Dooradoyle, the second phase of the overall development, where 65,000 sq ft of retail space is being added to the current 150,000 sq ft centre, is nearing completion.
At the Kilmurry Roundabout, on the Dublin Road, Superquinn is due to move into the 100,000 sq ft Castletroy Shopping Centre in the autumn as the anchor tenant. Opposite the Parkway Shopping Centre, also on the Dublin Road, Dunloe Ewart has permission to build a retail park of about 100,000 sq ft, to be anchored by a major DIY chain.
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