"We want to provide a range of quality housing that people can afford, and also a variety of ways that people can buy the houses," says Steve Evans, Fletcher Building's chief operating officer housing.
Steve Evans, chief operating officer housing, Fletcher Building.
"We've taken a view that if we can create well-designed communities with different home types and sizes, then this fits the needs for first home buyers, married couples, families and those going into retirement.
"The challenge is to get the right piece of land and location to do this."
Fletcher Living, the group's housing brand name, is continuing to expand the Stonefields residential community at Mt Wellington, is completing stages four and five at Karaka, and is well advanced with earthworks at Whenuapai -- the first of 650 homes will be built there after the summer.
Earthworks have started at Hobsonville Point, Beachlands, and for 520 dwellings on the old Peninsula golf course at Red Beach, There are further development opportunities at Swanson and Ormiston.
Members of the Manukau Golf Club will move to their new fairways at Ardmore towards the end of next year and Fletcher Living will begin building 400 houses on the old course next to the southern motorway in 2017.
Fletcher Living has also made a private plan change application to develop the Three Kings Quarry into 1000 dwellings, mainly apartments and terraced houses.
The company hopes to start the urban design development within the next three to four years.
"This is the second biggest brownfield site in Auckland and it's a fantastic opportunity to create a community," says Evans.
"The quarry goes to 40 metres deep and we will fill up to 15 metres below Mt Eden Rd.
"The medium rise housing will go no more than four storeys above the road -- that's reasonable -- and we can pick up eight or nine storeys of apartments cascading the down the quarry face."
The quarry is at the southern end of Mt Eden Rd, and new links will be created to connect the community precinct with Three Kings town centre and the volcanic cone Te Tatua a Riukiuta Maunga (Big King).
Australian-born Evans worked on the award-winning Adelaide Wharf in Hackney, London, that provided a mix of open market and affordable housing. He believes this development approach can be replicated in New Zealand.
Adelaide Wharf comprises 100 homes -- half of them bought on the open market and the other half government-subsidised for renting like state housing here or intermediate tenure with a right to buy.
The subsidised housing was provided for key workers in London -- such as nurses, teachers and firemen -- to save commuting time. If they wanted to buy their home, they only needed to put down a deposit for half the price.
For instance, if the house cost $400,000, they made a deposit of $20,000 and borrowed $180,000. The remaining $200,000 was paid over time, such as five years.
If the value had increased to $450,000 by that time, the capital gain or finance costs are included in the final purchase price.
"This provides a staircase to ownership -- and it is a form of equity that is affordable," says Evans.
He says in New Zealand there has to be realistic dialogue with government over the housing affordability issue. "Why not exclude development contributions on some housing, and put the balance on open market homes.
"The same level of contributions are collected but they are paid by those who can afford it.
"When you pull all the levers, you can get different financial outcomes -- as shown in urban London regeneration."
Fletcher Living is presently building 450 dwellings including apartments in Auckland in a year and wants to increase this rate to between 1000 and 1500 within three to four years.
"We think that's the right balance," says Evans.
"In the not too distant future we need to continue to increase the supply (in Auckland), and a total of 13,000 to 15,000 dwellings represents a steady market.
"But the annual demand is more about making sure there is a variety of home types that everyone can engage with."
Fletcher Living is also playing its part in the Christchurch rebuild and presently has up to 150 new dwellings at various stages of building.
The new Awatea development near Halswell is another example of a new urban designed community, with 240 houses, playgrounds and cafes.
Fletcher Living is moving into big Christchurch central developments with Colombo (69 terraced houses), Welles (114 apartments), and the East and North Frame residential precinct -- Avon, Latimer and Lichfield -- (940 townhouses and apartments for 2200 residents). These developments will provide a variety of choices and prices for those wanting to climb on the property ladder.
