Hubertj wrote: » Yes that’s right as it appears their site costs are about €30k cheaper than in the SCSI analysis. I presume that is because they acquired sites some time ago while site values were lower. Good strategy but question will remain how many people will be able to buy at those price points.
mcsean2163 wrote: » Were looking at this: https://touch.daft.ie/for-sale/detached-house-greenacre-ballybride-road-rathmichael-co-dublin/2560460 Just told today, already sold for above asking, cash buyer. Does cash buyer have any significance, i.e. does it mean developer?
Bass Reeves wrote: » In any good business model you watch replacement costs as much as the original cost. There is no point in selling product unless you can release margin to profit. If Cairns use the 30k saving in site costs to reduce there house prices it creates an issue for them when they go to purchase the next sites. Only reason to do that is if you think you will replace sites at what they are presently costing you. Towards the end of the noughties boom a developer bought a site I. The local village. He paid about 30k/ semi detached house site. As the collapse started he change his plans from Semi D's to town houses and duplexes his reasoning '' buyers did not want semi D's''. Now the real reason was he got his pricing wrong the site was never developed. It very easy to get costings wrong and Lise your shirt in the building/developing game. BSing that you costs are lower than everybody else is the sign that you are clutching at straws. Even if he is correct and Cairns stay building if most other builders cannot compete they will stop building. Supply collapses. Labour costs will only fall so much before paddy the plasterer from Cavan or NI decided it not worth his while commuting 3-4 hours a day in and out of Dublin
PropQueries wrote: » Where Cairn Homes plans to slash their costs is open to debate though.
MacronvFrugals wrote: » Today its for the young professionals with fast lives, tomorrow OAPs thats my worry
Smouse156 wrote: » I thought OAPs would love “Very Trendy Boutique Hotels”...
Ursabear wrote: » I'm sorry I am just catching up on todays thread and also wonder why that guy was asked not to open up this thread more to the economics that drive the property market. I don't mean to argue against the mods either but its odd to me that some people are asked not to mention the forces that are affecting the market but then there are posts about individual houses being sold - which would be more suited to the buying and selling thread. Talking about the economic theory is surely important on a thread that is about the market.
fliball123 wrote: » As in if I have 10 apples and 10 people want to buy then the price is set, if 5 people no longer want an apple then the price drops but if we take 5 apples out then the price reset to what it was.
PropQueries wrote: » It does seem that Cairn Homes and Glenveagh may be in the opening stages of a potential price war at the lower end of the market, so price falls may happen much quicker than last time. Where Cairn Homes plans to slash their costs is open to debate though.
rks wrote: » Its been there for quite a few months:https://www.myhome.ie/residential/brochure/6-st-kevin-s-place-donovan-lane-blackpitts-dublin-8/4453820 They were trying to sell it for over €750000 for months. I am not sure if they managed to sell any of them. Price updated to €695000 today. Thats over 50k drop. Still way overpriced I think.
schmittel wrote: » I think it is a bit odd too. Especially when this sort of thing passes for intelligent comment on how houses are priced:
Cyrus wrote: » what leads you to believe that they are at the opening stages of a price war?
PropQueries wrote: » From listening to the interview with the CEO of Cairn Homes on RTE this morning. He seemed to be laying out a strategy to aggressively target the lower end of the market over the coming years to drive sales. We have two big boys i.e. Cairn Homes and Glenveagh. Both bought their sites near the bottom of the market, can operate at scale, have to publish their sales every quarter or six months and have shareholders to keep happy. Cairn Homes has 17,000 sites and I think they're going to do their level best to ensure anybody thinking of buying a new home over the next few years will be buying from them and from the interview, he appeared to be putting across the message that price is going to be their primary differentiator/ advantage in the market going forward. That puts them head to head with Glenveagh, who seem to have a similar strategy. He said that going forward, they will concentrate on selling homes in the €300k - €380k price range. He then went on to say that most other developers can only build for that price given that most other developers have higher site costs, finance costs etc. (see link to SCSI cost of building report below). He followed that up by stating that Cairn Homes purchased their sites at an average of €32k each. He also stated that he can sell his homes for a similar price to what the state can build them at. For anyone interested, the RTE interview with Cairn Homes is on Morning Ireland. It’s included in the 7:50 am Business News slot on their website. Link to Morning Ireland: https://www.rte.ie/radio1/morning-ireland/ For anyone interested in the SCSI report "The Real Cost of New Housing Delivery" published in July 2020, they put the cost of building a 114 sq.m. home at €371,311, split between €178,902 hard costs and €192,409 soft costs. Link to SCSI report here: https://www.scsi.ie/documents/get_lo...551&field=file
fliball123 wrote: » Go look at yourself in the mirror you come across as a know all who knows nothing and that response was to someone who doesn't seem to understand that price is made up of supply and demand so when you have posters on here thinking like a 5 year old sometimes I feel like I have to explain it like the person was a 5 year old. Just because I over simplified something don't try and make it out that I have no intelligence as you don't know me or my qualifications or my education and its always a sign of someone who has low intelligence or who is losing the argument when they go for the man and not the post, just as an aside was the statement I put up wrong ?? maybe I should explain things to you like your a 2 year old. Also I have also never advised anyone on buying or selling so regardless of my wisdom or lack of it (according to your amazing self) no one will get stung by any comment I have put up. Most of my views I have tried to use sources such as Myhome, CSO and the property price register to back them up.
schmittel wrote: » I made no comment about you personally, nor have I ever done. My comment was about the post, which to answer your aside, may have some validity when it comes to apples but in the context of house prices is utter nonsense. We are literally not comparing apples to apples here!
Cyrus wrote: » handsome house 500 shades of greyhttps://www.myhome.ie/residential/brochure/18-castle-avenue-clontarf-dublin-3/4453481
