Mr. John Coleman:

Ultimately, the value of the site will derive from the cost of the product built on it, whether for rent or sale.

If a developer thinks he can sell a completed house for €300,000 and it will cost him €250,000 to build it, he might pay €40,000 for the site and allow himself €10,000 profit. Roughly speaking, it would be something like that but the price he pays for the site would always be tagged to what he thinks he can sell the house for at the end. Similarly, if the LDA is looking to target an affordability level, it will impact on what can be paid for the site because the costs of delivery are relatively fixed in that they are the market costs of going to a contractor, etc. The affordability requirement will effectively reduce the value of the site.