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Property prices expected to rise by 2 percent this year

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By Ted Healy of DNG TED HEALY

It's that time of year again where property reports on the year past are plentiful, with financial institutions, agencies and construction firms all analysing the past 12 month's activity and making predictions for the year ahead.

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The latest report, from the Society of Chartered Surveyors (SCSI) has highlighted that in the final quarter of 2022, 40% of house sales were due to landlords exiting the market.

It suggests property prices are expected to rise by 2 percent this year, a considerable slowdown on the double-digit growth rates up to now which is likely to put a squeeze on house builders because construction costs are rising at more than 2 percent. This will directly impact on supply to the market.

The large numbers of buy-to-let properties being sold will not be replaced in the rental market, putting more pressure on rental costs.

The survey found that popular new three-bed semis remain out of the reach for a large number of first-time buyers on average salaries.

The trend of second-hand buy-to-let properties coming on the market was evident throughout 2022, but it ramped up in the last quarter of the year. While this may have helped to increase the number of properties available for sale – 66% of agents reported low stock levels this year – the lack of supply remains the dominant issue in the market.

The trend of private landlords exiting the market also has serious implications for the supply of rental properties. SCSI agents are reporting that the supply of available units to rent is at one of the lowest levels ever, and they do not believe the situation will improve in the short term.

“Almost 80% of agents surveyed are of the view that individual buy-to-let second-hand rental units being sold at present will not be replaced in the rental market in the next two years,” said John O’Sullivan of SCSI.

The survey found the three primary reasons for occupied residential units coming back on to the market for sale include the complex and restrictive nature of rent regulations, landlords finding compliance with rented housing standards too onerous, and net rental returns too low, according to the report.

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Killarney Innovation Centre seeking funding for major expansion

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The Killarney Innovation Centre has announced plans for a new building project to meet the growing demand from small and medium-sized enterprises (SMEs) in the region.

The not-for-profit centre, which has operated for over 25 years, aims to expand its capacity to provide workspace and growth supports for local businesses.

Plans for the expansion have been in development for two years.

However, the centre is currently facing challenges in securing the capital financing needed to begin construction.

Management noted that while the demand for space is clear, existing government supports for such infrastructure are limited and difficult to access.

“This project is about creating the conditions in which businesses can thrive and contribute to the regional economy,” said Mr Counihan, Centre Chairperson. “The demand we are seeing reflects the ambition of local enterprises, and it is essential that infrastructure keeps pace with that growth.”

Over the past two years, the board has engaged with various funding bodies and agencies to secure financial backing.

Mr Counihan expressed frustration at the current funding landscape, stating there is a “disconnect between recognised need and available supports.”

The centre is calling for a renewed focus on capital investment for enterprise hubs, highlighting that such projects deliver long-term returns through job creation and regional competitiveness.

The proposed build would allow the centre to accommodate more businesses and provide enhanced services for evolving industry needs.

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Aghadoe Heights Hotel appoints new Spa Manager

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Aghadoe Heights Hotel and Spa has announced the appointment of Lorna Jankovic as Spa Manager.

The move marks a significant step in the hotel’s continued investment in luxury wellness as it prepares to unveil new innovations at its award-winning facility.

Jankovic brings extensive experience from senior roles in luxury hotels and destination spas across Ireland and Europe.

Her career includes positions at The Shelbourne in Dublin, Corinthia Hotels International in the UK, Malta, and Portugal, as well as experience with wellness cruiseliner Steiner Transocean.
“Our aim is to offer something that feels like a true reset,” said Jankovic. “We want guests to step away from constant stimulation and reconnect through touch, presence and thoughtful care. It’s about creating space for intentional rest and holistic luxury.”

The appointment comes at a pivotal time for the spa, with several developments set to be announced in the coming months.

These include the introduction of new treatments, the expansion of bespoke therapies, and updated holistic wellness programming.

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