The property market in Bandon experienced strong demand throughout 2023, evidenced by the sale of 142 houses in Bandon and its surrounding areas as per the property price register. Concurrently, construction initiated on several new housing developments situated north of the town. However, the second-hand market grappled with severe supply constraints, significantly affecting mover-uppers and imposing notable limitations on overall supply.
The average property price in Bandon stood at €290,000. Breaking it down further, the average semi-detached home was priced at €270,000, while detached properties commanded an average of €425,000. New builds averaged €440,000, contingent on the finish quality. Despite the steady rise, Bandon remains notably more affordable than Cork City (€365,000) or the national average (€320,000).
In a market characterised by tightness, there exists a robust demand across all property types. However, the most coveted properties are those boasting energy efficiency with BER ratings of A to B3, coupled with turnkey conditions. The allure of these properties stems from the incentives extended to buyers of new energy-efficient homes, including benefits from schemes like the Help-to-Buy program and preferential green mortgage rates. At DNG Galvin, we’ve observed a pronounced surge in interest for detached properties, particularly bungalows in close proximity to the town centre. These specific properties are highly sought after, notably among downsizers seeking a comfortable transition
Bandon’s appeal extends far beyond its local populace, attracting a diverse range of buyers. Notably, individuals from Cork City are drawn to Bandon for its affordability and its convenience as a commuter hub. We’ve also assisted downsizers who’ve transitioned from their properties in West Cork, choosing Bandon as a convenient midway point to be closer to family residing in the city. Furthermore, families relocating from Dublin and various regions frequently opt for Bandon due to its outstanding schools.
On a national level, first-time buyers maintain an active presence, especially within the new homes sector, showing a particular interest in properties that are energy efficient and qualify for green mortgage rates and government incentives such as the help-to-buy scheme. Mover-uppers encountered a period of stagnation in 2023, largely due to uncertainties surrounding escalating interest rates and a scarcity of alternative housing options. However, a notable surge in activity emerged in the last month, primarily attributed to forecasts anticipating a reduction in interest rates. Despite this, the ongoing challenge remains finding suitable homes within this tightly constrained market.
The commercial market in Bandon reflects the broader national trends. There’s a notable demand for industrial units, whereas retail units situated on the main streets experience comparatively slower growth. Bandon has undergone significant development efforts aimed at enhancing the town’s infrastructure. However, as with any development, this progress takes time and has caused some inconvenience during the construction phase. The completion of Ballymodan Place stands as a testament to the promising future that Bandon holds. A more appealing townscape is expected to draw in more residents and businesses to the town over the coming years. One aspect worth highlighting is the substantial cost of rates imposed on commercial buildings along the main street. These elevated costs serve as a deterrent for individuals considering operating businesses in this area.
In the upcoming year, 2024, the property market is anticipated to maintain its upward trajectory due to persistently high demand coupled with limited supply. Although there’s a commendable pace in the construction of new homes in Bandon, the second-hand market grapples with scarcity. An evident challenge persists in the housing landscape: while there’s a notable production of two-story houses, there’s a clear and growing demand for bungalows, especially among the aging demographic. It’s crucial for Ireland to reassess its housing development strategy to meet this specific need in the future. Looking ahead to 2024, we anticipate market trends resembling those of 2023, foreseeing single-digit nationwide growth. The shortage of available second-hand stock seems poised to persist, contributing to this trend. The current interest rate environment appears to be reaching its peak, with predictions of rate reductions in the latter half of 2024. This forecast bodes well for buyers, enhancing affordability. Overall, price increments might reach up to 5%, primarily influenced by continued constrained supply and limited output of new homes in most areas.
The DNG Galvin team services Bandon, Kinsale, Clonakilty, Courtmacsherry, Ballincollig, Bishopstown and surrounding areas throughout Cork City and West Cork.
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