Willie Hewitt
After working locally for 10 years, Westmoreland Homes owner/director Willie Hewitt is used to navigating the highs and lows of the building market.
Although the company was established in Mangawhai building spec homes, it now builds between 30 and 35 houses a year for clients from Dairy Flat to Whangarei.
“We’re absolutely flat out,” Willie says. “Last year we were getting a lot of enquiries that weren’t going anywhere, but this year the enquiries are serious and genuine.”
Aucklanders, who are cashing up and moving north, are fuelling the building boom.
“Two years ago an average home cost $450,000 to build. For that same home today, you are looking at over $600,000.”
Some of the added cost reflects increased construction costs, but home owners are also spending more on their homes, putting in the added extras such as heat pumps, fireplaces and “fancy kitchens”.
They are also building bigger, with 250sqm to 300sqm homes not uncommon.
Willie says land prices in Mangawhai have risen sharply over the last 18 months, albeit that they came off a very low starting base.
He says a section that cost $100,000 18 months ago is now selling for $275,000 to $300,000.
“That’s if you can find one. Every spare bit of land has gone and the developers are struggling to keep up with demand, and this is pushing up prices as well. I think we’re starting to see a bit of resistance from the public to these higher prices, though.”
Willie says one of the frustrations for customers at the moment is the lead-time before building can start.
“Draughtsmen, engineers and Council are all busy, and some delays just can’t be helped.
A building inspection in Auckland has to be booked at least two to three weeks in advance and you can double that time if, for some reason, they have to come back and do a second inspection.
“There can be delays in getting building materials and getting title on a new subdivision is taking four to six months.”
Richard Denton
Richard Denton, of RD Construction, says one of the biggest issues builders are dealing with at the moment is the necessity of pricing plans for clients before consent has been issued.
“They require a cost before submitting plans to Council for consent, but the problem with this is that there are often alterations made to plans by Council that require you to then have to alter the price you originally gave,” he says. “And sometimes the material costs have gone up in this time, too, and that requires re-pricing.
“It is very difficult to get sub-contractors to spend time on pricing something that may not even happen. We are all very busy so it has to be done at night and on weekends. People don’t understand the time that is involved in putting together a price.”
Richard says material costs are continuing to push the price of a build up.
“This can definitely limit the choices that clients have regarding the finish and so on. Consent costs also continue to rise and compliance costs, which builders have to pass on, are driving up prices. This includes things like scaffolding, edge protection, fall protection and hazard protection programmes.”
Richard Wilcock
Richard Wilcock, of Richard Wilcock Builders, laments there are not enough skilled tradesmen around to cope with burgeoning demand.
The Mahurangi East-based builder says trying to find skilled labour is impossible.
“I know the plumbers and the electricians are having problems as well. I think it’s across the board.”
So rather than recruit new people, Richard prefers to concentrate on maintaining a single reliable team of four or five old hands.
He also finds having a single team means he can more closely monitor quality standards.
But it also means that he has major challenges in meeting demand, particularly when subcontractors supplying things like trusses, frames and concrete are similarly struggling to keep up.
“The lead times on all that sort of stuff is stretched out right now,” he says.
If he were to receive a new job today, Richard anticipates he would not be able to attend to it until the middle of 2018.
In addition to new homes, Richard also notes an upturn in demand for alterations, such as removing walls to create more space and improving insulation.
He notes that building costs have gone through the roof, with steep rises in the price of timber, steel and concrete and the cost of complying with New Zealand building codes.
But higher costs have not slowed growth.
“I can see this area turning into another Whangaparaoa already, especially with the motorway coming through. It’s very good for business,” he says.
