THE second hand property market is showing definite signs of recovery…but new house sales remain static.
There has also been a marked improvement in the commercial sector, with several important shop sales recorded in the city inside the last month.
That is the word from a prominent local auctioneer who has detected a sharp, if unexpected rise, in the sale of second-hand houses.
And he is hopeful that the upturn will continue, and that Ireland is coming out of the recession.
He pointed to world oil markets. “Much to the annoyance of motorists, petrol prices have risen steeply in recent weeks, but the upside to that is that it signals a world-wide demand for oil again. The wheels are moving in the United States and that is good news”.
Though the property market had taken a nosedive over the last 12 months, there were, added the auctioneer, no bargains to be found in city estates.
“Estates such as Caherdavin, Dooradoyle, Raheen, Corbally and Castletroy have held their values, with prices much the same as they were before the recession hit. The reason is that they are all close to the city with amenities on their doorsteps”.
However, it is a different story on the outskirts with big price drops in areas like Clonlara, Crecora, Patrickswell, Meelick, etc.
A spokesperson for one of Limerick’s biggest developers told the Limerick Post that while there was noticeable movement in the market place generally, it had yet to happen in new house sales.
“There is a lot of stock around just now with some builders having in excess of 20 already built units just sitting there. That is a lot of money to have tied up.
“Consequently, there is precious little in the way of new builds, with some sites having closed down.
“While second-hand houses might be in demand, the situation there is that people are trading-up and are not too heavily committed loan wise.
“Buying new is different, though, and the lending institutions have more or less shut shop when it comes to giving out substantial loans. Investors are also thin on the ground”.
