Cairn: No end in sight for home shortages
The chief executive of Cairn Homes, one of only two Irish builders listed on the stock market, has signalled that he is not confident about the national shortage of housing being resolved any time soon.
Speaking after Cairn posted earnings, CEO Michael Stanley said the industry is responding by building more houses and apartments but it is unlikely that, by 2021, enough housing nationally would be completed — even as Cairn hits its target of delivering an annual 1,500 units by then.
Cairn focuses on the Dublin area and is best known as the developer of the RTÉ campus after its successful bid to build homes on part of the Donnybrook site sold by the broadcaster.
Analysts estimate that as many as 35,000 new homes a year may be required, in the short term, for supply to come anywhere near to matching demand.
Mr Stanley lauded changes in regulations for apartment building and fast-track planning, but wouldn’t be drawn on other fiscal changes that the housebuilder might favour in October’s budget to help spur supply.
Revenues of €130.4m earned in the first six months were based on the sale of 293 units over that period. Cairn will hit its target of generating over €350m in revenues this year, based on completing over 800 units, it said. It posted operating profit of €18.1 in the first half, up from €2.5m a year earlier.
Mr Stanley said Cairn is seeing a pickup in demand and doesn’t see evidence that demand is slackening. Prices had risen 5.6% on homes and apartments it has built in the past year.
