Housebuilder Glenveagh Properties CEO Stephen Garvey has warned that “dysfunctional planning policy” needs reform to solve Ireland’s residential undersupply challenges.

He pointed to strong underlying demand continuing to be driven by a combination of a robust economic environment, a fast-growing population and increasing levels of inward migration.

"This is putting further pressure on what is an already undersupplied housing market. Addressing this significant undersupply continues to be obstructed by dysfunctional planning policy," Garvey said.

"The government's demand-side initiatives have been supportive most notably for first-time buyers. The increased recent focus on planning system reform is also to be welcomed and is an important first step to alleviate near-term planning gridlock. However, we would now strongly encourage that planning policy reform is expedited to solve the longer-term structural supply issues the sector faces," he added.

Glenveagh Properties has reported revenue growth of 36% for 2022, driven by its suburban business segment.

In a trading update for the year to 31 December, Glenveagh said it had sold 1,354 suburban units and that revenue for the year was €649M, up from €477M in 2021.

Sales were 50% higher than the 902 units it closed in 2021 and 90% ahead of the 712 suburban units closed in 2019.

Operating profit was approximately €70M, up from €51M in 2021, though Glenveagh noted that inflation across materials and labour remained elevated throughout the year.

"We continue to work in close collaboration with our supply chain partners to secure sustainable, competitive pricing, while maintaining the security of supply. In addition, we have further developed our own supply chain capabilities to give us greater control over input costs and mitigate the effects of the inflationary environment," the company said in its interim results statement.

Glenveagh reported suburban revenue of €454M. The suburban average selling price was about €330K, up from €308K in 2021.

The company said it finished the year with 408 suburban units contracted or reserved for 2023 but noted that forward sales rates are lower than previous years.

Glenveagh said it had four projects signed — East Road, Barn Oaks, Castleknock and Cluain Mhuire — which it expected to generate more than €310M in total revenue.