With so few transactions occurring it is hard to get an idea of values when the most common approach is the ‘comparative method’ (we cover some of the pros/cons in our investor reports) which tends to be most accurate when there are lots of sales happening [and for the same reason can be pro-cyclical].
A useful tool for potential property buyers is to see if they can purchase ‘below cost’, this is particularly useful when there are not enough transactions on the market to get good information or if you want to have a gauge you can use on your own.
Construction costs calculated every year by the Society of Chartered Surveyors in their ‘house rebuilding insurance guide’ and by using their estimates as a guide it can help potential buyers discern a good deal when they see one.
For instance, a 1,200 square foot 3 bed semi-detached in Dublin will cost (using their rebuild estimate of €177 per square foot) €212,400 to build.
If you are thinking …