Words: Dylan Murphy
The study provides worrying news for first time buyers in the capital.
According to a new report from the Society of Chartered Surveyors Ireland (SCSI), a couple each earning Dublin’s average wage could not afford the cheapest apartments in the city.
It found that most apartments are not economically viable for developers to build for sale and thus most are rented out. In the report, it noted that a deposit of €37,500 would be needed to purchase the cheapest two-bed apartments for sale at €375,000. In turn, this would require an income of €96,000 at the minimum. Meanwhile, the average income between couples in the capital is €88,000.
In the report’s recommendations, it noted, “there is still an issue with apartment affordability whereby a couple need to have a combined salary of €97,500 to afford a suburban apartment at the lower end of the scale.”
The report also highlighted that a couple that were first time buyers who have a deposit of €60,000 and a combined income of €150,000 still couldn’t afford a typical two-bed apartment in a high-rise building in the city centre.
The SCSI Cost of Apartment Delivery Report provides current figures on the costs of delivering various categories of apartments to market. The report features a breakdown of costs, affordability and viability analyses and recommendations for the future.
You can read the full report here.