Irish Property Market chat II - *read mod note post #1 before posting*

Lending limits going to 4 times, State stepping in to buy apartments at top dollar, State stepping in to buy over priced houses for social housing outbiding the private joe.

We must be some idiots that the politicians implementing these idiotic policies think we believe their lies saying that they want to make housing affordable.

I knew deep inside in my gut, and I think most people here knew that the minute things started to go south even slightly the state with their big corporate tax purse would step in and effectively bail these developers out and prop the **** show up. There is something very wrong and stinking here, really stinking.

Some free market there.

Surely the social tenants housed in them do?

The big beneficiaries are the sectors represented by the dominant lobbyists.

Once upon a time lobbying was identified as a key contributing factor in bankrupting this nation.

Social tenants are not beneficiaries as at the price paid, we can never solve the problem for them and make it harder for every level of participant attempting to secure housing

Potential and serving Social tennants are a grouping/sector. More and more are ending up in emergency accomodation and this will worsen as long as state is paying maximum price for accomodation

It will have a similar effect on all other categories of renters

Last week the 2021 price breakdown for a category b apartment in Sanford was posted. The margin at that time was 11%. Cairn are reporting a margin achieved of 21% and rising in their latest results. One can safely deduct that government policy is the single biggest factor in house price inflation over the last 2 years. That's some achievement considering what has transpired for inflation in that short period of time

Developers would make more profit from modular homes if they were actually cheaper and viable at scale in this country. How you think reducing build costs would reduce profits is beyond me.

It is a supply constrained market right now, so houses and apartments will sell around the same price regardless of how it was built because there is undersupply. If a developer could build cheaper using modular housing they would bite your arm off. The fact that nobody in industry here is doing it suggests it is not viable.

It gives a hand up to social tenants by stepping on the heads of those of us working and on the margins sure why would you bother working when you are better off not bothering

A developer could easily buy in modular parts, have them fitted, then sell at same market price they sell conventional build at.

Your posts are a load of nonsense that show you havent the first clue about what modular construction is right now or how it works. Modular builds need assembly, connection, and interior fitout still. And they are something supplied by a 3rd party same as youd get blocks or concrete from a 3rd party.

Factories who make modular homes are not in the business of also building homes like a developer would, so this argument about current developers being put out of business is absurd.

Do you know what a property developer is? Its majority just project management while most of labor is subcontracted. If anyone were to "lose out" from modular homes and a different skillset it, would.be the subbies. Developers have nothing to lose and everything to gain from this golden goose you describe.

The reality is modular housing is not what you portray it to be.

They could easily buy in the modular parts and construct them but the majority of the profit will be in the fabrication of the materials as the construction of these parts are relatively easy to do as I have said there are lots of examples of these modular homes being built in the factory and lifted to the site ergo no need for any specialist construction expert the only bit part would be pouring a concreate base for them to sit on and attaching utilities and no need to pay out for building walls, floors, ceilings etc- They could make hay in that space but lets be honest it will come no where near the profits on what they are currently getting for their bricks and mortar builds. You need to famiiarise yourself with modular homes pal.

If modular homes were the desired solution for our current lack of supply issue with regards to housing those on welfare, those not being able to afford the current price point and refugees coming into the country it would take a lot the current construction companies pipeline away and it would allow for supply to tick back up and actually take the heat out of our property market so while I agree that they create different things, the things that both create would be competing for people who currently have no roof over their head.

Your cracking on about them buying in the individual pieces of modular homes and constructing them as a business model and in your opinion that they would make more profit on doing this than continuing with their current bricks and mortars offerings. Which is ludicrous as the construction implementation for these modular homes needs no where near the expertise/expense needed for building a traditional house/dwelling. Your negating the fact that most of the construction is already done in the factory so not much construction needed (if any) So their room to make profits on construction of modular homes via the model you outlined is not really there they could create their own factories and start making modular homes themselves but this would be a move away from what they traditionally do sure if they are doing that why not go into making pizzas or an other sector that could be more profitable as if they are just selling modular homes that have been premade they are just glorified estate agents selling a property? What is an EAs profit margin 1%?

Increased profit doesn’t mean they have increased their margins it could just mean an increase in turnover which based on your previous post would make sense. (I.e. they are building more for the same margins)

Increase in profits yes due to doing more business but it doesn’t point to an increase in profit margins like you previously claimed is happening

The developers "room to make profits" is by bringing finished houses to market and selling them for more than the cost to build and finance.

It doesn't matter how easy or difficult or skilled the builders must be, that only affects build cost, it does not affect sale price.

Sale prices are determined by market forces of supply and demand - right now demand way outstrips supply so even an easier built modular home would sell for same as "bricks and mortar" if they were of similar spec. If modular homes were cheaper to build and could be supplied then they would be far more profitable for a developer. If you cant comprehend this well then ill leave it with you because I've wasted enough time explaining the basics of what a developer actually does for you.