Dáil Éireann Debate, Wednesday - 18 January 2023
520. Deputy Róisín Shortall asked the Minister for Housing, Local Government and Heritage if his Department has conducted any research into the proportion of the cost of new apartments or houses that is attributable to the land purchase costs; if so, if he will provide same; if not, if his attention has been drawn to any available research or data in this area; and if he will make a statement on the matter. [63913/22]
View answerMy Department undertook a Review of Delivery Costs and Viability for Affordability for Affordable Residential Developments in 2018. While the Review highlighted some of the factors that can impact the cost of land, it did not specifically consider the proportion that land costs contribute to overall cost of developing houses or apartments. A copy of the Review can be accessed on my Department’s website at the following link: www.gov.ie/en/publication/2cfffc-review-of-delivery-costs-and-viability-for-affordable-residential-de/
I understand that the Society of Chartered Surveyors Ireland (SCSI) has undertaken some analysis of the development costs of houses and apartments in recent years. The SCSI Cost of Delivery Report 2020 suggests that land and acquisition costs contributed to 16% of the cost of development of a 3-bedroom semi-detached home in the Greater Dublin Area in 2020. Similarly, the SCSI Real Cost of New Apartment Delivery Report 2021 estimated such costs contribute to around 11% of the overall cost of development of a medium rise suburban two-bedroom apartment in Dublin. Both of these reports can be accessed on the SCSI website: scsi.ie/.
The proportion that land costs contribute to the overall cost of residential development depends on a number of factors, including the type, size and location of dwellings. As the SCSI notes, land cost can also be influenced by many factors, with potentially significant variance in values across and within counties. Locational factors such as access to amenities, demographics and access to public transport all impact the pricing of land. As well as locational factors, other factors can impact the price of land including density, risk, topography and demand.
