A new report reveals that a couple first time buying an apartment in Dublin would need a joint income of almost €100,000 to purchase the lowest priced property.
This is according to the ‘Real Costs of New Apartment Delivery 2020’ which has just been published by the Society of Chartered Surveyors Ireland (SCSI).
They found that a first-time buying couple would require a deposit of €38,000, and a joint income of €98,000, to buy the cheapest available apartment type in Dublin.
The report also revealed that the total development costs of building medium-rise apartments in Dublin has fallen by between two per cent and nine per cent over the past three years.
The costs of building a low-rise suburban apartment ranges from €359,000 for a low-spec unit, an increase of eight per cent since the SCSI’s last apartment report in 2017, to €413,000 for a high-spec one, up seven per cent.
All these figures are cost prices and sales prices would need to exceed these for developments to be viable.
The latest report is based on data covering almost 10,000 apartments in four different categories in 49 schemes.
The latest report also found that the cost of building a medium-rise apartment, known as hard costs, made up 47 per cent, or less than half of the overall costs, which is an increase from 43 per cent in 2017.
Among the conclusions of the report was a proposal for a government intervention to lower the burden on the rental market.
“The development of a Government policy and scheme for the roll-out of a more active cost rental model is one to be supported to assist families and ultimately reduce the high burden on the private rented sector to cater for all renter types, both private tenants, and public and publicly supported tenancies,” the report said.
The full report can be read by clicking on this link