Developer warns house price drop would make new-builds unviable

Comments by O’Flynn Group director follow ESRI assessment that Irish homes are overvalued by 7 per cent

It’s estimated that 40 per cent of planned homes in Ireland are not viable because they are unsellable apartment schemes. Picture: Rollingnews

Any fall in the price of new-build homes will make their construction unviable, one of the biggest developers in Ireland has warned.

Michael Kelleher, group operations director at O’Flynn Group, said any decline in new home prices would have a drastic effect on the delivery of housing in Ireland.

“The reality is that [new-build homes] are at an economic price. If there was a sense that they were to drop they wouldn’t be built, because ...