Have you ever day dreamed about living in your amazing dream house? You know, something not too huge but definitely new and stunning. Somewhere private and sunny, down a long drive, surrounded by beautiful trees, with preferably an expansive ocean view. That sort of thing. Luckily, dreams don’t come with price tags, so let’s take a look at the price of building a house in NZ.
Second hand Morris Minor
A childhood neighbour in her 90’s recounted the time when she and her husband were starting their married lives together and how they sold their much-loved, second-hand Morris Minor for a deposit on their first home! What an amazing story but not wanting to burst the dream bubble, the price of building a house in New Zealand has had a bit of a reality check lately. Needless to say, selling the second-hand Morris for a house deposit hasn’t been possible for quite some time.
Cost of land and building compliance
So why has the price of building a home in New Zealand risen like it has? This definitely depends on who you talk to. Some builders say it’s the cost of land which has been the overwhelming expense for developers and new home builds. There’s also the theory that building compliance is a massive road block and yet others say it’s all about the might of the building supply duopoly and following on from that, supply chain challenges.
While commercially sensitive, the cartel situation is arguably an issue and something which the Commerce Commission is taking a look at later in 2021. And while hardly justification, you just need to look at the supermarkets to know it’s not the only industry facing similar criticism. According to the Professor of Construction Management at AUT, John Tookey, it’s easy to make the allegations, but the answer is not exactly that straightforward.
It’s not all apples with apples
Often the price of building is compared between New Zealand and Australia. But it’s hard to compare according to the Professor and it’s not all apples with apples. There are 5 million people living in Sydney which has a land area of approximately 13,000 square kilometres, whereas our 5 million are spread across a much bigger piece of geography with multiple islands and locations. Their supply chains are quite different and certainly our overheads are much higher here and so on.
Factors in the price of a build
Building a new home is super exciting but it takes planning. Rocking up to a piece of land and starting a build sounds mightily good but it doesn’t really happen like that. Finding the right piece of land is one thing, but resource consent is required to build in the first place and if there are any land improvements needed before you build, this needs consent also. Your builder can certainly be of significant help here. Of course, it’s super important to choose the right builder. One with integrity and a history of excellence. These are all factors in the price of the build. Trust in your builder takes away a lot of the potential anxiety you might have about the build process. Not only should it be stress-free but also easy, exciting and even fun!
Keep it all on one level
It’s a good idea to keep an eye on the size of your new home. In the 1970’s homes were an average size of 110m2. In 2021, the average size is closer to 200 square metres. That’s a lot more dusting to do and arguably more cost. Another thing to keep in mind is going up. Not surprisingly, two stories cost more than keeping the equivalent size home all on the one level.
Have the price confirmed from the very beginning
The location of your new home will also determine how much it costs to build. Building in Taranaki for example is less than the most expensive place to build, which is in Otago. While not suggesting you move to Taranaki, there are lots of things which impact on the price of building a house in New Zealand. Certainly, a house package with a fixed price contract is a very good place to start. That way you can be sure to have the price confirmed from the very beginning. The certainty of a fixed-price contract gives you peace of mind. Longview Homes builds with fixed price contracts and Longview Homes knows that beautiful homes shouldn’t cost the earth.
Get in touch with our team or call 0800 100 945 to start your exciting new build investment journey today.
Longview Homes builds both custom and pre-designed warm, dry homes of exacting quality, built to last. We have locally owned franchises around the country. It would be our pleasure to take on your building project.