SCSI president tells members of building bounce-back

The country needs more office space, more urban housing, increased construction activity and employment — and greater investment and activity at a regional level, Patricia Daly, president of the 5,000-member strong Society of Chartered Surveyors Ireland (SCSI) told last week’s annual dinner, attended by 1,250 guests.

Just prior to confirming a 5% increase in their SCSI Construction Tender Price Index for 2014, Ms Daly noted the recovery in the country’s property, investment and construction sectors: some €5bn was invested in property in 2014, she said, while €11bn was spent on construction projects as the seven-year recession eased out of its slumbers.

According to the SCSI, tender prices have increased steadily since hitting rock bottom in 2010/2011, and the pace of recovery picked up in 2014 (up 2.9% for the latter half alone.)

“This trend is likely to continue during 2015 as activity in the industry picks up, following the upturn in property transactions.

While most of the recovery was in Greater Dublin, it is likely to spread regionally in 2015, with possible skills and specialist sub-contracting shortages. Clients should note that QS advice should be sought in pricing future risk items,” say the SCSI

Build prices had slumped 33% from peak in 2007, and unsustainable below cost tendering became a feature: they’re now at 1999 levels, according to the SCSI.

Meanwhile the society’s annual dinner attendance of 1,250 “is a very good barometer of the growing confidence in the economy and our industry,” said president Pauline Daly in her address, welcoming a forecast of 5% growth in the economy in 2015. She noted that it was still vital to address the acknowledged shortage of prime office space in our major cities, to attract Foreign Direct Investment, while the housing market was also under-performing, building less than half the amount of new stock needed to meet demand.

Last month’s announced Central Bank lending rules “will help avoid excessive lending” but may also result in some unintended consequences such as an increase in rents and a threat to the viability of new housing developments.

“We need to ensure that the new rules are balanced by an adequate housing supply if we are to have a sustainable housing market,” stressed the SCSI President.

Details: www.scsi.ie