Auctioneers in Kinsale, Co Cork, have queried figures issued by the Central Statistics Office (CSO) which indicate that house prices in the town have increased by 40 per cent over the last year.
The CSO said prices in Kinsale have jumped from an average of €255,714 to €359,259 in the 12 months ending July 2016.
However, auctioneer Victoria Murphy said the figures are skewed by the number of cash sales which take place in the town. "The average age of buyers in Kinsale is between 55 and 65. Most sales in Kinsale are cash and they don't involve mortgages.
"Older people move here because they want to just walk outside their door and have nice places to eat out. Yes prices are buoyant, but they are also buoyant in Cork city and places like Cobh. Kinsale attracts a more mature crowd of people who want to play golf in the Old Head. It's a different market."
‘Billionaires’ row’
Ms Murphy said Kinsale has houses selling for in the region of €2 million at Ardbrack, which is the “billionaires’ row” of the town. “However, there are still houses in Kinsale that sell for €200,000.”
Another auctioneer, who declined to be named, said the figures were a “complete distortion” of reality.
“What is happening is that the CSO are taking all the house prices in Kinsale and dividing them by the numbers of properties sold. And if you throw a couple of high-end sales in the millions it distorts the picture. An average three-bed semi here is €250,285 and that’s pretty much the same as it is in most places.”
Auctioneer Josie Walsh said there has been huge demand for property in Kinsale since the end of the recession, when prices dropped by 50 per cent.
“There has been a rush in Kinsale since the end of the recession. In 2013, a three-bedroom semi in Kinsale would have sold for €175,000; this summer it’s €100,000 more expensive. The purchasers are driving the prices.”
