Number of new builds nationally declined amid Covid-19
There were 323 new residential address points added to the GeoDirectory database in Kilkenny in the twelve months to June 2020 — down from 390 for the same period last year.
The figure is according to the latest GeoView Residential Buildings Report by GeoDirectory and EY-DKM. The decline is being attributed to Covid-19 issues.
Nationally, the number of new address points fell by 32.9% year-on-year in the in the same period.
There were 278 residential buildings under construction in Kilkenny this June, with 13,661 residential buildings listed as under construction in Ireland in the same month — a 3.2% drop compared to last year.
There were 599 residential property transactions in Kilkenny in the twelve months to May 2020, of which 8.3% were new builds. Nationally, there were 41,363 residential property transactions in total over the same time period, of which 18.8% were new dwellings.
In Kilkenny, the average house price was €217,028. Nationally, the average house price increased by €3,643 (1.2%) to €296,758 in the twelve months to May 2020. When Dublin is excluded, the national average house price stands at €230,492.
The report shows that the average vacancy rate in Kilkenny was 3.3%, lower than the national average of 4.5%. Vacancy rates declined in 25 out of 26 counties in the State, with Dublin posting a slight increase.
“This report shows the impact that Covid-19 has had on housing supply in under six months,” said Dara Keogh, Chief Executive, GeoDirectory.
"For the first time in several years, we have seen a drop in the number of new address points added to the GeoDirectory and a fall in construction activity compared to the previous year. Residential property transactions have also declined across the country. Time will tell whether this is just a temporary stalling of supply and demand, or if it is evidence of a long-term change.”
Annette Hughes, Director of EY-DKM Economic Advisory Services said that while additions to the housing stock and construction activity have fallen over the past twelve months, it should also be noted that the majority of new housing stock and building activity is primarily located in Leinster and the Greater Dublin Area in particular.
"This may change in future depending on employment trends such as working from home," she said.
"The national average house price increased by 1.2% in the twelve months to May 2020, a much slower rate than for the same period in 2019 (+5.8%). However, it is important to acknowledge the lag between a property going sale agreed and the execution of the associated contract, means that the figures reported for July and August will more fully capture any Covid-19 impacts on prices.”