Why don’t they build more houses in Dublin?

They have a market now what’s stopping THEM?

Not so fast.

Yesterday members of Property Industry Ireland, Dr. Peter Stafford, Aidan O’Hogan, Tom Phillips, chair of the planning and regulation committee and Ms Marian Finnegan, member of the market supply and demand committee appeared before the Joint Committee on the Environment, Culture and the Gaeltacht to discuss the subject of commercial and domestic property – supply and demand.

Mr Phillips revealed in relation to the one of the reasons developers were not building dwellings is that penal levies were being imposed on them and therefore it was not in their interest to build at this time.

“…the Metro in Dublin adds a levy to certain developments. The Metro is on hold, but the levy is still in place. The levy is there for a 30-year period. If the money has not been spent in 30 years, it can be refunded to the developer. I can think of no other levy that has a 30-year life span. There is another special levy in Kilternan. To build an apartment in Kilternan, one pays a levy of €11,000 per residential unit and then a special levy of over €40,000. It works out at €55,000 per unit in levies. That is apart from a potential windfall tax, Part V social housing and other costs. There are many costs. That is the situation for people who have land at present. It is a tricky point…”

Anyone?

Oireachtas.ie

Meanwhile…Pace of property price hikes picks up again – CSO (Irish Independent)