The cost of building a 3 bed-semi in Dublin is now €371,000 with construction costs accounting for less than half of that, according to SCSI.
This is €41,000 or 12% higher than 4 years ago, the last time the construction industry body carried out a similar survey.
The SCSI said the increase was primarily driven by an increase in “hard costs” – the bricks and mortar element of construction – which rose by 19% or €29,000 during the period.
The so-called “soft costs” – land, development levies, professional fees, VAT and developers’ margin – increased by 7% or €12,000, it said.
Nonetheless, the report indicates that “soft costs” accounted for 52% or €192,000 of the €371,000 total.
The report called for a commission on housing to examine the tax treatment of new housing, noting that VAT makes up 12% (€44,000) of the total cost of a new home while in the UK there is no VAT on new houses.
Read full article: IrishTimes.com