Irish Property Market chat II - *read mod note post #1 before posting*

I stil don't understand the market for 1 beds at €1800+. I get many ads for these types of place online too, but I just don't know who they're really for. The only thing I can think of is things like short-term corporate rentals, but there just can't be that many of those. It's not even a case of people paying for it with HAP. A couple on HAP can, at most, rent for €900 (up to €1080 with an exception), which is well less than what these cost.

I understand the rational business case for keeping an apartment empty a few months to avoiding getting locked into a lower rate when you're in a rent-pressure-zone. But with these ones, I just don't see who is ever going to want them at that price. You'd probably need to be earning €90k+ to be able to pay that rent comfortably, and aside from the fact that very few people do earn that much, it just seems like someone on that kind of money would not want to be living in a one bedroom apartment.

The thing is that 1 beds are often just very short on space in general. You'd usually be looking at 50sqm or less in a 1-bed, compared to 75sqm for a 2-bed, and that smaller amount of space can be a bit cramped even for a couple if they're there long term, especially one with that kind of money to spend. A 2 bed can also work for small families much more easily. I've lived in 2-beds the past few years and have been surrounded by families (usually immigrants) with small kids in their own 2-beds. Probably not a great a long term solution for them either, but it does still mean they have some time before the kids get older to stay put.

It's also very easy to rent out the second room if you are young and single, which I had done for a few years on my previous place, which is a vastly better experience than living with 3-4 people in a bigger place imo.

I knew Dublin was expensive for renters but that's fairly shocking!

Is there a point rental unaffordability will make us uncompetitive in attracting the best talent?

My point was around the many transient workers particularly in the MNC sector, when does cost of living become untenable for them?

A corporate rent is a business expense to the business so they are paying from pre tax income so effectively the true cost is half the rent fig.

Private rental is aid from post tax income so you have to earn twice the rent pre tax to afford it post tax.

When I was reading the articles on Facebook announcing 10000 new jobs were being created in the EU earlier, obviously the main thing that stood out for me was that it said "EU" but also one article specifically said that Facebook could not confirm how many jobs would be in Dublin as Facebook has implemented a policy for EU based workers to request to work in any EU country where Facebook has an office. People talk and the cost of living being poor value here does travel among people. I think we're now at the point where the housing market will grind the economy to a halt.

Is there any websites that give an overview of new property developments in Dublin or the surrounding counties, or what's the best way of finding these, aside from being a vulture fund?

Quite surprised by that price also. Wouldn’t have much change left from €2m bringing that up to standard. And even at that you have no back garden, only a fairly public east facing front garden. Wouldn’t be for me!

Couple of really eye catching houses on that same road up closer to the Marina side. Wonder what they’d go up at!

The IMF pretty much saying changing the LTI ratios would be suicidal...

IMF: Need for caution as house prices boom in many countries including Ireland

By using the term "soft landing" it nearly flags that they're concerned there's a bubble. There would be no need for any landing if this was sustainable.

Seems an odd case but lots of interesting outcomes

Council agreed price for 16 homes august last year in Limerick village. Builder came looking for more 12 months later citing covid restrictions and inflation. Council prevented from paying more so Focus Ireland stepped in with funding from Estonia based crowd funding to pay the "much higher" price.

The development is 16 3/4 bed semi d's. The figure quoted is 3.5 million which works out at just under 219k per unit.

Thats not bad with covid disruption, material and labour inflation factored in plus a return for the Estonians.

Puts the cost of building an A rated 3/4 bed home in perspective

Understandable that a higher price was needed on the back of materials costs and that Council did not have the ability to match. Hard to say what the real story is with limited details, but it sounds fairly messy.

But in the skeptic in me feels that the "council claimed not doing so would result in an unfinished ghost estate" is a bit of a smokescreen, given the current housing market.

From what I read the company will be taken out of receivership to complete the houses. 250 K is starting to become a base price for 3 bed houses anywhere in the country. The article never stated if the 3.5 million as the last price or the new price for the development.

That area is an nice part of Limerick, you are along the Shannon and off the main road. There is an agricultural college based in that village and AFAIK there is a Secondary school attached to it so everything at your doorstep.

I say the Council's problem is if the receivership happen the houses would have gone on the private market and any replacement project would cost 20-30% more.