Site/Building Costs

What do people think will happen to the cost of sites and building costs when the bubble bursts? If farmers who own sites don’t really need to sell then surely they wont drop their prices, and what would make building materials and labour cost less? We’re looking at building but it would cost around €350k and I just can’t justify paying that much! Everyone tells me that building and site costs won’t be affected by any drop in the housing market and there’s no point in holding out… Anyone have any thoughts?

You may get more responses on one of the ‘main’ sections, any-who hears my two cents;

I Meet a lot of farmers from time to time and over the last ten years I’ve noticed that many of they seem to want to be doing anything but farming I live in a HIGH price suburb and the near by farmers have built storage/comercial units, rent out feilds to sports clubs, even planted trees on good grazing land. Not that I blame them IMO they just want a slice of that ‘celitic tiger’ thing that’s suppose to making everyone elses’ life soooo much beter. Farmer I know sold his farm for €26m in 2005 and retiered (how nice) still drives a 1987 corrola NO SHIT. IMHO Most farmers don’t have huge ambitions for what they can get out their farms eg sports clubs can get 10 acres (4 hecters) ‘worth’ several millon yo-yos for 10 - 20k PA. IMHO they will continue to sell at the ‘market value’ 50k for the corner of feild that gives a return of a couple hundred a year is a business ‘no-brainer’.

As for the other costs of building IMO prefabricated building is the big thing on the way, it will put significant downward pressures on build costs, I’d expect to see small parks of such showhouses pick your generic design (may be add a bedroom or two) and you get the plans with no arcitect costs to get your planning (they make their money form selling and building units) instead of various high cost builders who never seem to be there trying to make sense of the plans you get a crew who build the house from start to finish thats one type of dozen or so they do and most of the joinery is done at factory spec ect.

The prices will never fall brigade are everwhere remember this a country with a very low population density, somone will always want to sell, why else would anyone of sold a house 12 months ago or two years ago when prices were climbing so fast? A small builder told me he could make a handy profit building a 2000sq ft 5 bed house for 130k even with a one off design but admitted (1 year ago) he’d quote at least double that then at least and had full order books for at least a year, thats a bubble for you; UP AND UP HIGHER AND HIGHER TILL WE ALL FORGET WHEN THINGS WERE DIRE. People will take what’s on offer for what they have that’s a free market for you just as what’s on offer can inflate a market a lack of offers can deflate prices that goes for the farmer and the builder.

Thanks corkrenter,

Do you know if there are any prefab suppliers already in Ireland? Some of the timber frame places build the structure in a factory then deliver it, but as far as I know it doesn’t work out much cheaper at the moment. I suppose it might be worth waiting for ppl like your builder friend to have no orders left and then they might drop their prices nearer to €150k… but maybe that’s too optimistic. Posted this again on the main board in search of more attention!

Internationally there is a great selection.

I am a huge fan of prefabing it bloody common sense. It brings down the cost of all of our everyday goods so why not Housing!

Kingspan created an amazing home that won a UK competitoin for public housing and it came in cost wise €91K.

You must see it to believe it (previous thread on the PIN) … t=kingspan

I think you should wait. All land & service prices will fall due to lack of demand. The previous posters have put it rather accurately.

Yes Ireland has something like the 3rd lowest population density in the EU, yet another contradictory fundamental that undermines the justification for the current mania.

Also if the kingspan story is not telling of how over inflated prices are versus cost of build then you’d need your head examined.

I have read of German prefab companies who can do an amazing house for around £60,000 (sterling) and have it assembvled on site in 1 week.

Whatever way the planning laws & various other legislation is constructed it does seem to favour the slower, more costly native building industry who like to pour concrete like cream on a pudding, liberally. I find it depressing. Of course Irish house are almost prefabed in the sense the builders are buying larger multiples of materials and getting a super low cost but that is not being passed onto the consumer.

So the way I look at it is, many of the open markets inIreland are working in favour of the consumer but the housing market is a rather large exmaple of where it is.

When was the last time you heard a politicain say the housing market needs “competition” to sort it out…