BUSY REPORT SEASON FOR SCSI It has been a very busy three months on the report front for the SCSI, starting with the launch of the ‘Real Cost of New Housing Delivery’ in late July. The report found that the average cost of building a threebed semi in the greater Dublin area is €371K, an increase of €41K since the previous report was published in 2016. It found the rise was mainly due to an increase in hard costs, which made up 48% of the
n availing of competitive tendering to deliver key capital projects; n helping
local
authorities
to
rejuvenate our town centres; and, n investing
in
the
future
by
developing a construction tech hub.
total. In contrast to the private sector model, the cost of delivering a public sector house was estimated to be between €210K and €230K.
Key elements of the submission were
Micheál Mahon, then incoming SCSI President, pointed out that the
reported in The Sunday Times, Irish
housing crisis would not be resolved until the critical balance between
Independent and Irish Examiner.
affordability for consumers and viability for developers was addressed. Micheál was interviewed on RTÉ Radio One’s Morning Ireland as well
Covid-19 has ‘sharp and immediate impact on tender activity and prices’
as Newstalk’s Breakfast Business – and led to meetings between the
The latest Tender Price Index, which was
SCSI and officials in the Department of An Taoiseach, as well as with
published by the SCSI in early October,
opposition spokespersons.
showed that construction price inflation slowed dramatically in the first
The report was widely covered in the print and broadcast media –
half of the year due to Covid-19. According to the Index – the only
Special Covid-19 Residential Report Once
the
property
market
independent assessment of commercial construction tender prices in Ireland – the national average inflation rate increased by just 0.9% in the first half of 2020, down from 2.8% in the second half
reopened in early June the Society
of last year. This brought the national annual rate of inflation down
was keen to gauge the impact of
to 3.8%.
Covid-19. In August it published
Speaking on RTÉ’s Morning Ireland, Micheál Mahon said Covid had had
its ‘Special Covid-19 Residential
a sharp and immediate impact on the level of tendering activity, and
Report’, which found that two
in turn tendering rates, as many construction firms focused attention
out of three estate agents
on securing projects for 2021.
believed property values had largely remained unchanged
SCSI PwC Ireland Construction Monitor
compared
Covid.
In the SCSI PwC Ireland Construction Monitor, surveyors warned
Almost three-quarters of
to
pre
of a challenging outlook for the construction sector due to Covid-19,
those surveyed said the level
but also pointed out that opportunities existed. Because of Covid,
of enquiries had remained
surveys were taken in February and June and the findings showed
the same, while 10% of property sales were
the sudden impact the virus had on the sector with sentiment
renegotiated due to Covid-19, with the average price reduction being
regarding activity levels, profit and outlook shifting dramatically from
3%. Vice President TJ Cronin said the survey showed the resilience of
positive to negative. Micheál Mahon said that while the sector had done
the market, but also warned that the outlook remained challenging.
well to weather the initial impact of Covid-19, the findings raised
The survey received strong coverage in the media and TJ was
serious concerns: “Because of the long-term nature of construction
interviewed on Newstalk’s Breakfast Business.
projects, the sector places a huge value on economic certainty and consumer confidence. Unfortunately, both have been badly hit by
Pre-Budget Submission 2021
Covid-19 and that is why it is so important that the Government
The SCSI’s Pre-Budget Submission was sent to both the Minister for
continues to invest in the strategic objectives as outlined in Project
Finance Paschal Donohoe TD and Minister for Public Expenditure and
Ireland 2040”.
Reform Michael McGrath TD in mid September. In his letter to both ministers, SCSI President Micheál Mahon pointed out the areas the
Sincere thanks
Society believes need to be prioritised:
The President, Micheál Mahon would like to thank everyone who contributes to the Society’s reports and surveys throughout the year:
n increasing the supply of affordable housing;
“Whether you are the Chair of a group, a member of a group, or a
n ensuring that the Government’s ambitious retrofitting plan has the
member who participates in a survey, we would like to thank you
resources to hit its targets;
30
SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020
sincerely for giving up your time and playing an active role”.
