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Home / Business / Companies / Construction

Chinese-made houses heading for NZ

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
3 May, 2011 05:30 PM4 mins to read

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Plug In houses are made in China and then assembled on site. Units can have up to four bedrooms. Photo / Supplied

Plug In houses are made in China and then assembled on site. Units can have up to four bedrooms. Photo / Supplied

First came Chinese-made clothes and shoes. Now, houses could be next.

Recyclable, relocatable houses designed in North America and made in China are about to be offered in New Zealand if a businessman gets his way.

Anthony Dengli, a New Zealander who has worked in South Auckland's building sector, is
representing Plug In Construction which is headquartered in Montreal.

The firm was among about 220 businesses which made submissions to the Department of Building and Housing to provide temporary post-earthquake accommodation in Christchurch.

The Government gave priority to locally made materials and chose Jennian Homes, which makes houses at a pre-nail yard in Harewood near Christchurch International Airport.

But Plug In is pressing on with New Zealand plans. It hopes to bring housing components here in containers and then assemble houses on site and sell them - at $300,000 to $400,000 for a four-bedroom house.

First, the firm needs to get its designs certified to meet New Zealand standards.

Dengli is dealing with a territorial authority to modify part of Plug In's design to meet the Building Code.

Cheap Chinese building materials, equipment and labour have been a concern for many in the New Zealand construction sector.

Some industry bosses have warned of lower standards, particularly in relation to contaminated Chinese wallboard which caused major health issues in the United States.

They fear low-quality products arriving in containers could flood the market.

But Warwick Quinn of Registered Master Builders in Wellington has no problems with Chinese-made housing.

"As long as the houses meet our Building Code and New Zealand standards, this is an option for more affordable houses. I don't see any issues," he said.

Dengli said it was time expensive housing options were challenged and Plug In's business model was revolutionary.

The firm offers leases on houses and when a house is no longer needed, it can be returned to the Chinese factory and modified for a new use, he said.

A two-bedroom house could be leased on a three- or five-year term for about $37,000 annually.

Dengli wondered what the Department of Building and Housing would do with hundreds of temporary Christchurch houses once they were no longer needed.

Dengli compared Plug In's houses to stylish container homes made in tsunami-hit Japan.

"Our product, similar to the Japan temporary housing, can be reused and modified after it gets removed," he said. Once it was established here, Plug In could import and place five to eight houses a day, he said.

"They are made indoors in factories of China with the manpower and technology to complete multiple units at a time, currently widely used in Canada and throughout North America.

"They are made with the highest standards and withstand rough weather conditions, are durable, well insulated and easily transported to any site.

"Clients can have a choice to purchase the units after the lease expires for about $30,000 for two bedrooms.

"These places do not go to waste afterwards as we take them back to factories and modify them to reuse for other projects."

Dengli is yet to set up any links in Auckland but he plans to make that happen.

"We aim to provide New Zealanders with warm, safe and eco-friendly houses at affordable rates for people like you and me.

"It will be a whole new ball game for the building industry. The banks will need new ways to loan against these products. Cowboy builders will have to find new jobs, councils will have to find a new way of inspections as 95 per cent of the home is completed off-site.

"I'd like to call this the revolution for building and housing - a legitimate way of offering future-proof building," Dengli said.

PLUG IN

* Makes portable houses, that are designed in North America and pre-built in China.
* A four-bedroom unit sells for $300,000 to $400,000.
* A two-bedroom unit can be leased for $37,000 a year.

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