'We need 25k houses', says Murphy as prices rising by an alarming €500 a week
Housing Minister Eoghan Murphy has said house prices will continue to rise until the Government can address the issue of a lack of supply.
Mr Murphy was speaking at the Charlemont Street regeneration project and was reacting to the latest Real Estate Alliance (REA) report, which revealed that the average house price in Ireland was rising by €500 each week.
The increase is due to low supply in the country at the moment and Mr Murphy has said this is unlikely to change in the near future.
"We know that builders are building at the moment, they're building houses, they're building apartments, we need to get them to build more," he said.
"We have ambitious plans, but until we get that proper supply online, prices are going to continue to increase."
The report indicated that it will not be until 2020 that Ireland sees a more "normal" housing market.
However, Mr Murphy said this has been the case for two decades. "Next year we'll build 20,000 homes - private and public homes," he said. "That's a conservative estimate.
"We should be building 25,000 a year, so we're getting there. We are making progress every year, we've got to build and that's what we're doing."
Charlemont Street is one of a number of regeneration projects being undertaken in the capital.
The scheme, which has been in the works since 2007, will see an initial 79 social housing apartments in place and ready to move in to in the coming weeks.
Executive manager for housing at Dublin City Council, Tony Flynn, told the Herald that the project is just one of many over the coming years.
He said Mr Murphy has given a commitment that the Government will now pay developers up-front for 30pc of the social housing.
"Previous regenerations had to pay for themselves with no cost to the State, whereas regenerations now actually have no facilitated up-front social housing," he said.
Mr Flynn added that there have been significant developments in a number of other areas, including Dolphin's Barn, O'Devaney Gardens and St Teresa's Gardens.
"We're ahead of schedule in Dolphin House, we've phase one - which are the first 100 units - ready next March or April," he said.
"[Yesterday] we're opening the tenders for O'Devaney Gardens PPP [Public Private Partnership]," he added.