The highly respected Society of Chartered Surveyors Ireland (SCSI) published their latest “Real Costs of New Apartment Delivery 2020” this week.
The report highlights affordability remaining a critical issue.
The SCSI report reveals the cheapest two bed apartment in Dublin would cost €375,000. That’s for a low specification apartment in a low rise suburban development. The buyer would need a €37,500 deposit and an income of €96,000 for mortgage approval.
According to the CSO, just 20% of all households have earnings over €80K with just 14% earning more than €100K.
The President of the SCSI, Micheál Mahon said while there was no one solution to the affordability issue, the Government needed to accelerate the roll-out of a range of targeted supports to people struggling to get on the property ladder.
The SCSI report also highlighted that developers work on a 15% profit margin with a massive 42% of total cost being spent on VAT, levies and fees. The actual building costs amount to 47% of the total property sales price.
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