RENTS in Limerick increased by 0.5% in July, in marked contrast to other parts of the country where they fell by between 1% and 3%, according to the latest report published by the property website Daft.ie. The average rent by Shannonside in the second quarter of 2010 was €700.
One local auctioneer told the Limerick Post that the 0.5% increase could possibly be attributed to students hunting for suitable accommodation prior to the reopening of third level colleges.
“I suppose it could be asked why Limerick has bucked the trend when there are big student populations in Dublin, Cork, Galway and Waterford.
“Maybe there is a wider choice in those places making the market more competitive…I don’t know, really.
“While there is a lot of purpose built units close to LIT, UL and Mary Immaculate, it has been noted that many students are opting to go it alone and renting houses and flats in nearby estates, which can work out cheaper than student apartment blocks.
“What can be said is that landlords are now more conscious of their obligations and have upgraded their properties. Likewise, students have become very selective in their requirements”.
The average asking rent in the country was just over €835 per month, down 5% on the same time last year.
Commenting on the report, Ronan Lyons, Economist with Daft.ie said, “The year-on-year fall in rents is now at its slowest pace in two years, suggesting that the rental market may be close to stabilising. Nonetheless, the total stock of properties available to rent remains high, which means we are unlikely to see rents rising rapidly in the near future.”
Rents in Munster fell by 1.1% between April and June, having been largely static in the first three months of the year.
The average rent in Limerick city in the second quarter of 2010 was €700, while the average in the rest of the county was €650. This represents falls of €220 and €150 from their peaks in 2008.
Even though there has been an upwards trend in Limerick prices, they are still considerably lower than in the Celtic Tiger years.
This is the third year in a row that rents have been lower at national level than the previous year.
Compared with 2007, a typical student renting a two-bedroom property could expect to save between €1,500 and €4,000 over the course of the academic year.
The cost of accommodation for students still varies significantly around the country, with the average for a double room in Dublin city centre about twice the cost of renting in Athlone, Castlebar and Tralee.
