Latest news with #apartments
Irish Times
2 hours ago
- Business
- Irish Times
Ireland is overdependent on apartment development
Ireland is making its housing crisis worse by persisting with housing density policies which, in practice, mean that most new urban housing units are apartments or semi-detached homes. These cost too much to be suitable as standard starter homes for small households. Last autumn, a report on development costs in the Greater Dublin area, prepared for the Department of Housing by Mitchell McDermott , put total costs per square metre at €4,100 for a semi and between €6,040 and €6,500 for an apartment. If we assume cost per square metre for other types of conventional house is similar to that for semis, a two-bedroom, 80 square metre apartment would cost €150,000 to €190,000 more than a terrace house of the same size. On the same assumption, a typical three-bedroom semi with 35 square metres more floor space than a two-bedroom house would cost €140,000 more. We have been locked into over-dependence on apartments and semis by national housing density policies since 2009, and by the way builders react to them. Current (2024) policies require most new suburban housing estates to have a density of 40-80 units per hectare in Dublin and Cork, and 35-50 in the other cities. READ MORE Semis are profitable and reliable sellers, but they are typically built at around 25 per hectare, so they need to be combined with a higher-density component to comply. If this is in apartment blocks, the proportion of the site they occupy is minimised, leaving more of it available for semis. First-time buyers would be conscious of how much help they were getting, encouraging builders to compete on price Apartments have an important role on substantial brownfield or infill sites in inner city and inner suburban areas, or close to high quality, high frequency public transport. But expecting apartment output to expand in line with the doubling of housing output to the 50,000 or 60,000 units a year currently needed is unrealistic. Market demand for new apartments is largely limited to well-paid young professionals who are happy to rent. Unless very well-located and designed, they are not good value for money for owner-occupiers, and may not even be viable. These limitations can be overcome by generous State subsidies or if they are bought outright for social housing, but increasing the scale of this support in line with projected need is unlikely to be sustainable. Successive governments have backed apartment development by or for international investors to fund the required volume of new housing, as well as to promote compact city objectives, but have been slow to recognise its volatility and unreliability. After apartment completions rose from 5,100 in 2021 to 11,500 in 2023, the abrupt drop to 8,700 in 2024 was treated as an unforeseeable disaster, rather than the natural consequence of the four percentage point increase in interest rates between July 2022 and September 2023. If, as claimed, apartment output will only recover if the rental cap is removed at a time when average rents are already €2,000 a month and there is freedom to set initial rents above this, such investors are clearly difficult to satisfy. We have been locked into over-dependence on apartments and semis by national housing density policies since 2009, and by the way builders react to them Favourable market conditions for increased apartment construction may return and we should take advantage of them if they do. However, it is unwise to treat a permanently high level of apartment output as a 'must have', because it implies the State will rescue those who pay more for apartment sites than can be recovered by developing them and selling on the open market – a speculator's guarantee. Housing guidelines should be revised to reflect construction cost realities. One quick way of doing this would be to allow local authorities amend their development plans, so small terrace houses count for more per unit than apartments in density calculations, in locations they consider appropriate. Weighting could reassure developers that substituting terrace houses for apartments as the higher density component on a suburban site need not reduce the number of semis on the rest of it. Households often outgrow two-bedroom units, whether in apartment or house form, or find storage space in them inadequate, but this is easier to remedy in a house, providing it has a pitched roof supported by purlins rather than conventional trusses, and is designed to allow future conversion of the attic for living space or easily accessed storage. Extendability could be incorporated into a weighting system, so an extendable house of, say, 65-90 square metres was the equivalent of 1½ or 1¾ apartments. Terrace houses would be easier to market if extendable. The lower cost involved in terrace houses would be a necessary condition for lower prices and rents, but not a sufficient one. In the current sellers' market, lower costs might merely increase profit margins. However, there several ways in which this risk could be reduced. Firstly, where the State or a local authority is the developer, they control prices, and can pass on savings to occupiers of cost rental, shared equity or other affordable housing. Their housing outlays should go further, if more are spent on terrace houses. Secondly, the revision of the Help to Buy scheme promised in the Programme for Government could inversely relate the 'help' to unit size and cost, so it benefits smaller, lower cost units most, and tapers off as these increase. First-time buyers would be conscious of how much help they were getting, encouraging builders to compete on price. Favourable market conditions for increased apartment construction may return and we should take advantage of them if they do Thirdly, the Land Development Agency (LDA) could help finance lower cost housing by allowing small builders to develop on its land under licence, paying for sites as houses were sold. Target sale prices for their houses could be agreed, with surcharges on site prices if sale prices were higher, and rebates if lower. This approach would be less dependent on international investment funds. On the supply side, average unit costs would be lower, so overall financial needs would be less. More small builders would also develop if they did not have to come up with land costs upfront. On the demand side, the borrowing capacity of households which could afford a new terrace house, but not the extra €150,000 needed for a new apartment or semi, would be mobilised. Nicholas Mansergh was a senior planner with Cork County Council until his retirement in 2015, and lectures on planning in UCC. He is the author of The Irish Construction 1970-2023: Policies and Escape Routes, published by Eastwood Books in 2024.
Yahoo
2 days ago
- Business
- Yahoo
Growing New Apartment Supply, Low Absorption Rates Bode Well for Renters, Redfin Report Shows
An increase in the supply of new apartments in the US and a low absorption rate are enabling renters Sign in to access your portfolio
News.com.au
3 days ago
- Business
- News.com.au
1500 new homes announced for Sydney Fish Markets days after Rosehill redevelopment shot down
The NSW government has been given the green light for 1500 new apartments in a massive redevelopment of Sydney's old fish markets, days after a 'once-in-a-generation' mini city was voted down. The Australian Turf Club voted on Tuesday not to accept a proposed $5bn buyout of the Rosehill racecourse in Sydney's west that would have made way for 25,000 new homes and a Metro station. The controversial project was marred by delays, inquiries, and opposition from some of racing's elite, and the decision dealt a blow to Premier Chris Minns' push to erect more homes close to the Sydney CBD. On Friday, the government revealed the Department of Planning, Housing, and Infrastructure had approved Infrastructure NSW's plans to amend planning controls at the Blackwattle Bay site. Located at the old Sydney Fish Markets, the site was already slated for 1200 homes as part of a mixed-use precinct, but the office area has now been reduced to cater for more homes. Spanning some 30m of waterfront promenade, the project will rejuvenate the harbour and is being pitched as the 'missing link' in the 15km foreshore walk from Rozelle Bay to Woolloomooloo. It is expected to generate 4300 jobs at the government and private-owned sites within the precinct, which spans 3.4na near the city, with, open, recreational and cultural spaces. With the state government requiring 7.5 per cent of the homes at Blackwattle Bay to be kept for affordable housing, the project is not a replacement for the failed Rosehill project shot down this week. About 56 per cent of members present voted 'No' to the deal. On Tuesday, Mr Minns said he accepted the ATC members' decision but described the result as a 'golden opportunity that slipped through our fingers' and hinted at a possible 'Plan B'. 'We've got proposals that we're getting ready to roll out for more housing closer to Sydney CBD,' he said. 'They're not ready for me to announce today, and not everyone will love them, but they're absolutely necessary for Sydney.' Mr Minns has ruled out forced acquisition of the Rosehill site. The Blackwattle project, meanwhile, is expected to receive proposals in July from the short-listed developers Lendlease, Mirvac and Stockland, with the first homes expected by 2028.
BreakingNews.ie
4 days ago
- Business
- BreakingNews.ie
Housing crisis: Planners reject 120 new apartments over lack of three-bed units
Plans for over 120 new apartments in the Cork suburb of Ballincollig have been refused planning permission by An Bord Pleanála over the absence of three-bed or larger units in the development. The ruling represents a setback for building firm O'Flynn Construction, which had sought approval for the development of 123 units in three apartment blocks up to six storeys in height at Old Fort Road, Ballincollig, Co Cork. Advertisement The proposed development consisted of 84 two-bed apartments and 39 one-bed apartments. The plans on a 1.065-hectare site also provided for a creche and multi-purpose amenity room. The company had sought planning permission for the scheme under the planning process for strategic housing developments which does not require the plans to be initially assessed by the relevant local authority, Cork City Council. However, An Bord Pleanála said the Cork City Development Plan 2022-2028 sets out clear requirements on the mix of units within any new development. Advertisement It states that a minimum of 25 per cent of units in any new development of over 50 dwellings must have three bedrooms and a minimum of 10 per cent must have four or more bedrooms. The plans for the Old Fort Road site also exceed the maximum permitted proportion of smaller one- and two-bed units at 25 per cent and 40 per cent respectively. O'Flynn Construction argued that household sizes both nationally and in Cork were getting smaller. The company claimed the proposed development would appeal to a broad range of tenants by focusing on providing smaller units, affordability and quality housing. Advertisement However, An Bord Pleanála said the developer had not provided any justification why exceptional circumstances or flexibility should be used to its proposed mix of units. The board claimed the issue had not been addressed in a material contravention statement submitted by O'Flynn Construction which also concerned density and building height. An inspector with An Bord Pleanála said the unit mix would require 'a complete redesign' in order to comply with the development plan that would ultimately reduce the number of apartments in the scheme. Concerns were raised by several parties about the proposed development including the Waltham Abbey Residents Association whose estate adjoins the site being developed by O'Flynn Construction. Advertisement They claimed the density of the housing scheme was well in excess of recommended guidelines and claimed the development was 'overbearing, disproportionate, monolithic, visually dominant and out of character' with adjoining properties. The group also voiced concern that the height of the apartment blocks would have a detrimental visual impact on views of the River Lee. In a submission, Cork City Council acknowledged the density of the scheme exceeded the upper target for central Ballincollig but said it was considered acceptable given its location near the town centre. Council planners also claimed the proposed unit mix was satisfactory and they claimed the proposed development overall was in keeping with the zoning of the site subject to compliance with a number of planning conditions. Advertisement A separate decision by An Bord Pleanála in September 2020 to grant planning permission for the construction of an identical number of apartments on the same site remains the subject of an ongoing legal challenge. In September 2022, the Supreme Court ruled in favour of An Bord Pleanála in a case which sought to clarify a conflict which arose from the rulings of two High Court judges over whether the board was required to decline to deal with certain planning applications that were not accompanied by specific documents. The case partially arose from a judicial review brought by the Ballincollig-based Waltham Abbey Residents Association which claimed the board's grant of planning permission for the project on Old Fort Road in September 2020 was invalid. The Supreme Court directed that the original application should be remitted back to the High Court. Ireland Plans for almost 500 new homes put on hold after 3... Read More An inspector with An Bord Pleanála said the current proposal would be judged on its own merits. The inspector noted that the only differences between the two sets of plans were the omission of a gym at ground floor level in lieu of a multi-purpose amenity room for residents and some internal layout changes to improve daylight levels. She observed that the proposed development provided a high quality form of residential accommodation with a wide range of amenities that could create a distinctive sense of place and which would encourage social integration from generous communal open spaces. However, the inspector also recommended that planning permission should be refused because the unit mix did not comply with the Cork City Development Plan 2022-2028.
BreakingNews.ie
6 days ago
- Business
- BreakingNews.ie
Land Development Agency to deliver 320 cost-rental apartments in Co Dublin
The Land Development Agency (LDA) plans to deliver more than 320 new apartments in Shankill, Co Dublin. The development at Woodbrook, which will have access to a new Dart station, will include 102 one-bed and 226 two-bed homes. Advertisement All of the apartments will be made available as cost rental. The agency said the apartments would be delivered in partnership with property development company Castlethorn through the LDA's Project Tosaigh initiative. This is where the agency partners with private homebuilders, providing the financial stimulus required to initiate construction and complete new housing projects. The completed homes are then owned by the LDA and made available as cost rental or sold by the LDA in partnership with local authorities through affordable purchase schemes. The development will be next to Woodbrook Dart station, which is due to open this summer In this case, all of the 328 Woodbrook apartments will be made available as cost rental. Cost rental is a relatively new tenure, which provides a long-term rental option with rents at least 25 per cent below market rates. Advertisement Cost rental is designed to assist those who do not quality for social housing or other State housing supports, but who are struggling to afford to rent in the private market. The apartments are part of Castlethorn's Woodbrook development, which includes 685 homes and has the potential to deliver an additional 500 homes. The development will also feature amenities including a creche, a primary school and neighbour centre. The Woodbrook apartments are being delivered in two blocks over six storeys and are due to be completed by 2026. Woodbrook Dart station is due to open this summer. Ireland Targets for cost-rental properties expected to be... Read More John Coleman, chief executive of the LDA, said the development was in an accessible and attractive location for renters. "These new homes will play an important role in addressing demand for affordable, secure rental accommodation in south Dublin," he said. Joe O'Reilly, chief executive of Castlethorn, said the firm was "delighted" to partner with the LDA on the project. "The proximity to the new Dart station, high-quality design, and inclusion of community facilities make this a highly attractive offering. We look forward to delivering these sustainable A-rated homes and helping to establish a new community that will thrive for generations to come."
