In November of last year, we that wrote that Dublin Councillors voted 48 to 14 to reject a deal which would have seen the sale of one of Dublin City Council’s largest sites, the Oscar Traynor site in Santry, to developer Glenveagh Homes:
A new report has found that Council built houses on the site would be €40,000 more expensive than privately built units, at €430,000 compared to €390,000. Under the terms of the Glenveagh Homes agreement, 20% of the houses would have been affordable housing, 30% social and 50% private. Of the 853 houses, the breakdown would have been 172, 253 and 428, respectively.
The Council’s head of housing, Mr Brendan Kenny, reiterated that the Council built houses would have been more costly, due to a number of issues including public procurement rules, which mean that each project is an open tender process, thus the Council cannot negotiate reduced prices based on volume. The “complexity” and the “the level of oversight” of working on Council lead projects are deterrents for private developers, which effectively reduces the supply and pushes the price up even further.
Mr Kenny highlighted the fact that the construction of 853 badly needed homes will be delayed for many years.
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