A recent survey reported that the average price for a new house in Limerick City is now '250,000. The average price for a second hand house is also '250,000.
House prices in Limerick City dropped by an average of 16% in 2009. The largest fall was in the price of new one bedroom apartments, which decreased by 41%. New two bedroom apartments suffered a fall in price of 36% and former corporation houses fell in price by 21%. The Sunday Times reports predicts that house prices in Limerick City will remain static in 2010.
The price drop in Limerick City suburbs has been greater than in the city. Areas such as Corbally, Raheen, Castletroy, Parteen and Dooradoyle have seen a drop in property values of 20% over the year 2009. The average house price is now '210, 000. Again, it is new one bedroom apartments that declined the most in value, by an average of 43%.
Job losses and reduced earnings have adversely affected the Limerick property market. The properties that are selling are mostly being bought by first time buyers lucky enough to be in secure employment and judged by mortgage lenders to be the least likely to have problems repaying their mortgage.
Rental rates will most likely decline in 2010, as more and more foreign nationals return home and overall rental demand decreases. The introduction of a residential property tax will not help the property investment markets, as such a tax will reduce even further the income from property rental.
This article is only intended as a basic general summary and you should always seek professional advice where necessary.
