DUBLIN CITY COUNCIL have announced that the long-awaited ‘affordable purchase’ homes in Montpelier site will go on offer next month - but many people are still priced out of the new developments.

The Montpelier development has seen Dublin City Council partner with developers Bartra and Tuath Housing, with the intention of building a total 1,044 new apartments by 2027 located around 3km away from O’Connell Street. 

The apartments are part of wider plans to alleviate the housing shortage in the capital.

Applications for the first 66 ‘affordable purchase homes’ at the former O’Devaney Gardens site, located in Stoneybatter, Dublin 7, will open on 11 June.

Affordable housing is often defined as when a person is spending less than 35% of their salary on rent or mortgage repayments.

The 66 apartments will be available at an average 20% reduction to the open market values of a similar home, according to Dublin City Council.

How much will the apartments cost?

The price of one-bedroom apartments at the site will start at €257,900 for a ground floor unit.

Prices for single-bedroom homes will rise to €270,000 for the upper floors (4th and 5th).

According to Dublin City Council, hopeful buyers (individuals or couples) will need a gross household income in the range of around €58,000 to €72,000 to be considered for these homes. 

These apartments will measure an average size of around 50 square metres – meaning that you’re paying over €5,000 per metre of floor space.

A design plan for the new apartments at Montpelier in Dublin 7.

The two-bedroom ground floor apartments start at €334,000. Prices rise to €356,800 for the upper floors, with these aparements measuring an average of roughly 80 square metres.

For the two-bed homes, a gross household income in the range of approximately €75,000 to €91,000 is needed to be considered.

“Households on lower incomes, who have additional savings, may also be eligible to apply,” the council said.

‘Out of reach’

Dr Laura Bambrick questioned the affordability of the new homes, arguing that “just because the price of a home is relatively cheaper than other properties on the market doesn’t make it affordable”.

A map of the new development site. Montpelier Dublin Montpelier Dublin

The Irish Congress of trade unions social policy spokesperson told The Journal that a single worker will need to be earning around €75,000 to borrow a €300,000 mortgage – assuming they are a first time buyer and can borrow four times their annual salary, and use the various help-to-buy supports to raise the 10% deposit.

“If you are earning €75,000 you are in the top 10% of highest earners in the country,” Bambrick said.

She said that that the current prices of the two-bed apartments puts them out of reach for “the vast majority” of single people.

“Even average two-income couples will struggle to meet the mortgage requirements,” Bambrick added.

“Two teachers in their first year after qualifying will earn under €70,000 between them. Two nurses just over €60,000 and a two garda couple less than €65,000, if not doing shift work.

“Is it any wonder we have a staffing crisis in our schools and our hospitals in Dublin?”

Bambrick also questioned how workers on minimum wage – currently vlued at around €27,000 annually – could afford the apartments.

“How can the SNA, school secretary, caretaker that are vital to the running of our schools ever afford these ‘affordable’ homes when the minimum wage is €27,000 a year and the Government has rowed back on their commitment to raise this to a living wage,” Bambrick added.