A PROMINENT Cork developer has warned that job creation in the city will be compromised unless the Government intervenes.
Michael O’Flynn, chief executive of the O’Flynn Group, insists that developers cannot turn a profit with residential building on city sites and believes the housing crisis will stay unless the Government change construction costs.
“We have a very, very serious issue in Cork as regards residential delivery. The existing stock and hangover we had from the last decade are almost gone and this crisis is going to get worse in Cork and it will impact on jobs — there is no other outcome but that.
“People think that because certain schemes are going for planning they will be built but that’s the developer planning for the future.
“Apartment blocks, unless they are viable or the Government helps to make them viable, aren’t going to happen. That’s my view. If they do happen, it means there is somebody creating something that will have a minus value overnight.
“We have a strategy in the [Project Ireland] 2040 plan that everything is aimed towards developing metropolitan areas and brownfield sites, which I’m all in favour of.
"However, at this moment in time we need to understand that the viability issue is stopping supply of apartments and quite frankly, when you add up all the costs of development, between construction, site costs, financing costs, developers' margins and VAT - all of that adds up to more than what an apartment is actually worth and that’s a very, very serious issue when it comes to a place like Cork.”