House-and-land packages are proving popular in Tauranga with reasonable prices and the Bay's lifestyle. Juliet Rowan examines the booming sector.
Tauranga is enjoying a boom in sales of house-and-land packages thanks to out-of-town buyers attracted by the region's reasonable prices and relaxed pace of life.
Buyers span the age spectrum, and although locals and first-time buyers are well represented, developers say it is investors moving from Auckland and Christchurch that are fuelling the sector's greatest growth.
Building companies say house-and-land packages offer an attractive option for consumers because of their ease and affordability.
People can choose from myriad designs and move into a new home, complete with landscaped grounds, in a matter of weeks.
"They basically get their keys and they can walk in and live," says Generation Homes Tauranga branch owner Lyndon Marshall.
Willingness of financial institutions to lend on the "turnkey" packages is adding to the appeal, with banks now offering up to 90 per cent finance on house-and-land deals.
Priced in the middle market range of about $350,000 to $500,000, the local sector is also experiencing competitive heat.
Twenty-two showhomes at the Lakes subdivision illustrates the point, and most building firms now facilitate customer access to lending institutions or offer finance themselves.
Jennian Homes Bay of Plenty director Matt Mackay says house-and-land packages are attractive for banks too because they require just one deposit down, then a lump-sum payment on completion.
"The numbers stack up," he says. "They're not having to borrow on a half-finished project."
Across the board, building companies report rapid growth in the sector in the past two years.
Golden Homes Bay of Plenty general manager Saint Whatuira says the packages offer a "worry-free" option, and Generation's Lyndon Marshall says they now account for 65 per cent to 70 per cent of his firm's business.
In 2012, Generation sold 30 house-and-land packages in the Western Bay. Last year the figure was 58. Already this year, it has sold 50 packages and is on track to selling 70 by year's end, Marshall says.
Classic Builders reports growth from 20 per cent of sales 18 months ago to between 50 per cent and 60 per cent now.
All firms say there is increased custom from buyers migrating from Auckland and Christchurch.
We see the design of smaller homes on a limited budget as a challenge. It's exciting to produce something on a budget that still has a point of difference.
Steve Montgomery, 45, is an example of the Auckland crowd.
The business development manager and his partner have bought a 700sq m site with a 280sq m house at the Lakes as a means of expanding their investment portfolio and potentially "getting out of the rat race".
"It makes sense whether it sits as an investment or whether we live in it," he says.
For Christchurch earthquake survivors Peta and Roger Ford, a house-and-land package is all about ease and getting the right design at the right price.
INJECTING DESIGN FLAIR
Suburban house-and-land packages may conjure up images of Coronation Street rather than bespoke design, but many building companies are now hiring established architects or working with in-house designers to give architectural flair to their projects.
Developers say consumer tastes are increasingly sophisticated and people are more aware of the variety of building design options.
Clever design is also aimed at economies of cost and scale, in a market where land and material prices continue to soar.
Venture Developments, which has house-and-land packages in several Tauranga suburbs, says architectural design satisfies consumer desire for individual homes.
"Kiwis don't like having their houses looking like everybody else," says director Mark Fraser-Jones.
"And by better use of space, you can keep the cost down. Every square metre costs at the end of the day."
Venture's average house size ranges from 110sq m to 175sq m (down from the New Zealand average of 200sq m 10 to 15 years ago), and designs maximise space through high ceilings and pared-back hallways.
Venture's focus on design has seen it engage Tauranga firm Idea Architecture to formulate a new showhome.
Idea's usual bread-and-butter is high-end residential and light commercial work, and director Peter Whale says smaller sites forced his team to be more inventive.
"We see the design of smaller homes on a limited budget as a challenge. It's exciting to produce something on a budget that still has a point of difference."
Whale, originally from the United Kingdom, spent seven years as head of design at former Tauranga firm Ambienti Architects followed by three years as senior designer at Will Tatton Architecture.
He says the dynamic between house designers and clients is changing, with most people now choosing to go through group homebuilders rather than engaging architects directly.
Kiwis don't like having their houses looking like everybody else. says director Mark Fraser-Jones.
The recession has affected building confidence and building companies restored that confidence through house-and-land packages.
"It's just people's sense of security knowing they have a fixed price," Whale says.
Will Tatton Architecture, the firm responsible for several of the mansions that line Mount Maunganui's Marine Parade and other elite streets, has also worked with building companies on designs for smaller homes.
But managing director Will Tatton believes people are still best to approach the process of designing a house through an architect.
He says architecture firms are better set up to go through all the design options with clients, and can then work with the building company to fix construction price.
SMALL BUT SWEET
Thorne Group's Urban Ridge development in Brookfield, meanwhile, is riding the trend for smaller house-and-land packages.
Company director Bob Thorne says a quarter of buyers come from Auckland and are typically baby boomers who have cashed up and want to downsize.
"They don't want big sections. They don't want lawns to mow."
Typical dwellings are two-bedroom, two-bathroom, 105sq m on 350sq m of land, and the average cost is $450,000.
Mr Thorne says the " turnkey" packages come complete with landscaping, washing lines and letterboxes.
The single-storey, stand-alone homes featured high-spec fittings including stone bench-tops; and the fourth stage of the development, with 25 lots, is almost sold out.
Thorne Group, as landowner, controls the development's appearance and uses an in-house architect to create unique designs.
"Every house is different from the exterior. We want to create a boutique development."
Urban Ridge is modelled on a development on Australia's Gold Coast and is Tauranga's first "master planned" development.
Motorists should avoid SH2 East between Stanley Rd and Fraser Rd.