To get a true idea of what you are buying divide the sq footage by the cost of the house . for example house size 1400 sq foot cost of house 325000k cost of house per sq foot €232 per sq foot .new build cost of a one off house ranges from 60€ per sq foot to 150€ per sq foot for a high end finish. the only variable is the amount extra you are willing to pay to live in a certian location and type of house you are looking to live in this adds the cost.
remember that Gunne Auctioneers sold all there propertys in 2006/7 at the hight of the boom ! and still kept telling people there was no end in sight to the boom.
also auctioners sell housing in “phases” this is so they can guage the market in the first phase and increase the cost based on the demand.
This is only partially right, IF the house is in punts than you use sq. foot measure if on the other hand your dream pad is in euros than you need to use sq meters .
By the way you did not calculate the price of the land in your little equation
Honestly, this is not much better or worse than most other valuation methods out there, apart from perhaps calculating the labour and material inputs and the land utility value (which also inevitably involves a lot of finger in the air gesticulations). But if you just use the figures you’re told to use by the plutocracy, then you’ll be on the same page as everyone else. Have no fear, they’ll be back with new figures for you to use once this little blip has been properly considered and they decide what they should do about it. These new figures will be backed up plenty, too. The ‘market’ is just a myth (a useful myth to the plutocracy though).
in Dublin pick a 3 bed semi say price range 350 to 450k
now ask yourself would you pay your 350/450k for this 3 bed in donaghmede or malahide?
You can subsitute the locations
Compare the price against the location
when I left college location was the key driver of price if you couldn’t afford to live in your favoured location you bought close to it
the bubble has distorted this developers adding 100K on to new builds etc bumping up prices on each new phase etc aparttments costing more than
semis glossy brochures etc etc you get the picture
This approach is cool when its possible to ‘replicate’ an equivalent home nearby
Eg When people were paying 600 EUR a sq ft for new homes in Stepaside (which cost 100 EUR a sq ft to build), yet there was as much land as far as the eye could see, it was pretty obvious that there was trouble ahead, as farmers would just continue to offload plots until we had built enough apartments to accomodate another small nation
However, when you get to homes that one cannot ‘replicate’ mostly due to location (St Stephens Green for example)…then its just worth what someone is ‘willing and able’ to pay for it, irrespective of whether it would cost 10% of asking to build it in Wicklow. Then, valuation is more subjective.
As an extreme example, take Monaco…people still happliy pay 5m EUR for crappy 1k sq ft 2 beds, in blocks that would look like council blocks in any other city…Yet, for various reasons there are people ‘willing and able’ to pay that amount to get their tax breaks and the city is fully developed so they cannot be replicated cheaper. If Monaco lost its tax breaks apartment prices there would fall 80% overnight
.