One of the country’s largest residential builders, Glenveagh has stated that it will sell 56 apartments in Dublin’s docklands to Dublin City Council for €22.06 million for social and affordable housing.
The apartments are part of plans by Glenveagh to construct 554 apartments at a site at East Rd located near to both the International Financial Services Centre (IFSC) and the so-called “Silicon Docks” area.
The builder has put the €22 million value on the apartments arising from its requirements under Part V of the Planning and Development Act which requires builders to provide a portion of new developments towards social and affordable housing.
Underlining the scale of the proposed deal, the €22 million value just falls short of the €23.17 million total Dublin City Council spent for all ‘Part V’ dwellings across the city last year when it acquired 98 dwellings in 17 separate developments.
Glenveagh currently has plans for the 554 apartments in nine blocks ranging from three to 15 storeys at the East Rd site before An Bord Pleanála under the Government’s fast track planning rules.
In a letter to the City Council, Director at Glenveagh Living Ltd, Shane Scully said that the 56 apartments includes 35 two-bed apartments at an estimated cost of €454,446 each to the Council.
In addition, Mr Scully has put a price tag of €296,821 to the Council on each of the 21 one bed apartments.
According to Glenveagh, the combined cost to the Council of the 35 two bed 880 sq ft apartments will be €15.8 million and the combined cost to the Council of the 21 one bed 568 sq ft apartments will be €6.23 million.
Glenveagh is proposing that all of the Part V apartments will be located in one of the nine apartment blocks planned for the site.
Mr Scully said that the proposal involves providing 10% of the future permitted units on site. Mr Scully stated that the contents of the letter “are purely indicative and intended to provide a reasonable estimate of the costs and values of the units”.
He stated that the information “will ultimately be subject to possible amendment and formal agreement with Dublin City Council” and this will take finalised after planning permission has been secured.
A Glenveagh spokesman declined to comment on the proposed Part V deal and would only state that “these units form part of its plans to deliver 2,500 units per annum at scale across the business”.
The City Council figures show that last year it paid a developer €645,486 for one ‘Part V’ dwelling at Dollymount Avenue in Clontarf and €571,680 for another dwelling at the same address.
The figures show that the Council paid €4.74m for 19 dwellings at the Marianella development at Rathgar - an average of €249,944 each.
Individuals paying rent in the private sector are currently paying record rents with the latest daft.ie survey showing that the average monthly rent is €2,002 in the capital.
However for those on the City Council waiting list for housing who do go on to secure a home, rent is calculated as 15% of the principal earner’s assessable income.
The Council’s rental scheme states that the maximum weekly rent that the City Council can charge is €301 for a one bedroom dwelling and €313 for a two bedroom dwelling.