REVEALED: What is the cost of delivering a new three-bed semi in Kilkenny?

A major new report has found that the average cost of delivering a new three-bedroom semi-detached house in a multi-unit scheme in Kilkenny is now €375,000.

Nationally, it ranges from a low of €354,000 in the North-West to a high of €461,000 in the Greater Dublin Area.

GALLERY: Kilkenny wedding pictures taken this year - check them out!

The report, which has been published by the Society of Chartered Surveyors Ireland (SCSI), found the national average cost of delivering this house type across seven regions by the private sector is €397,000.

According to the report, the increase over the last three years in the GDA has been largely driven by a rise in ‘hard costs’ – bricks and mortar – up 27% or €49K on average while ‘soft costs’ – land, development levies, fees, vat, margin – increased by 21% or €41K.

Chartered Quantity Surveyor Micheál Mahon, one of the report's authors, said the impact of Covid-19 and the war in Ukraine have been the main contributors to the increase in ‘hard costs’ over the past two years.

"The main hard cost drivers have been energy, fuel, and shipping costs," he said.

"The cost of various building materials, particularly concrete, insulation, electrical and plumbing products, steel reinforcement, and timber products, also increased dramatically.

"Nationally, ‘hard costs’ now comprise 53% of the total costs of overall delivery, while ‘soft costs’ make up the remaining 47%.

"However, in the GDA, this balance shifts to 49% ‘hard costs’ and 51% ‘soft costs’. While cost inflation has increased very significantly in recent years, recent SCSI surveys indicate prices are levelling off."

In the report, the SCSI also examined affordability from the perspective of a first-time buyer with an average combined salary of €95K taking out a mortgage with the support of the Help to Buy scheme.

This analysis showed that the Midlands and the North-West are the most affordable regions for purchasing a new home using averaged market value data.

Despite the challenges, Mr Mahon said the SCSI’s analysis showed that Government supports aimed at addressing viability and affordability are making a noticeable impact.

The President of the SCSI, Enda Mc Guane, said that the report recommends that more needed to be done to support modern methods of construction, pause future increases to connection charges and levies, as well as ensure the planning process is fit for purpose to de-risk development and bring down cost, which potential homeowners ultimately pay.

"While there has been a significant increase in the supply of new housing towards current ‘Housing for All’, it is important that we update those targets considering Ireland’s population increases," he said.

"Housing for All targets were based on the 2016 census, and the population has grown by 8%. Therefore, targets need an immediate revision based on the most up-to-date census figures.

"When setting and committing to new targets, we would also urge the Government to establish new targets for the number of units delivered by off-site construction."

The full report is available at scsi.ie/realcost2023