February 10, 2012

Brace yourselves—residential construction industry about to take off

Jennian Homes’ Director Richard Carver says the construction industry is on the brink of another boom.

“The period from 2012 to 2017 will see the construction industry flourish as it did between 2002 and 2007, but for different reasons,” he says.

“It’s an exciting time for us, and an opportune time for people considering a new home.”

Mr Carver acknowledges the role the rebuild of Christchurch, development to meet Auckland’s housing shortage, and remedial work on leaky homes will play in the industry’s revival—adding that market and industry forces have conspired to make this year the ideal time for anyone to build a home.

“Whichever way you look at it, now’s the time to build. Competition for rental property has never been greater, rents are on the rise, and many people would find themselves better off servicing a mortgage.

“House prices are back near the record highs of 2007 and we’re seeing fewer homes listed for sale. With demand outstripping supply in the housing market, building a home today is the financially astute option for getting the home you want.

“Interest rates continue to hold at historic lows, unemployment is down and consumer confidence is on the rise. It’s a great time to put the wheels in motion on an investment property too.”

Mr Carver says the impending upturn in construction in Auckland and Christchurch, coupled with the introduction of the Licensed Building Practitioner scheme, will place a strain on the country’s skilled labour force, and those considering a new home or investment property would be wise to act now.

“Development in Christchurch and Auckland will place a huge draw on our skilled labour force. The days where the baker would close his oven and pick up a hammer to plug the gap in the workforce are well behind us.

“The move to builder licensing is definitely the right one, but people will need to act quickly to secure the services of skilled tradespeople to build their homes. With the scale of demand on the horizon, people who choose to wait may struggle to find a builder and face rising costs for materials.

“Building a new home is one of the biggest investments a person can make. Deciding now will mean access to builders with the expertise to create the home you want.

“Jennian Homes has a successful track record of building homes for 30 years. We’ve seen these booms before and we have structures in place to cope with the increased demand.

Mr Carver’s advice to would-be homeowners is simple. “Contact a trustworthy builder, known for adhering to budget and schedule, make a choice based on quality and value—not just price, and go for it.”

ENDS

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