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Home / Business / Personal Finance / Investment

Hobsonville project boon for builders

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
29 Nov, 2011 04:30 PM4 mins to read

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Photo / APN

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G.J. Gardner is the country's largest house builder, according to a group house sector tracking business.

Whats On's latest report showed G.J. Gardner put up 453 houses in the October year. Those houses were worth $134 million, were an average 207sq m and sold for an average $297,275.

Whats On has been operating more than 20 years, selling construction intelligence for the commercial, residential and civil building industry sectors in New Zealand and the South Pacific.

G.J. Gardener is promoting its work at Hobsonville Pt, the new housing estate on Auckland's northern outskirts, showing it puts up more houses than any other group house builder.

Tony Houston, managing director for the firm's North Shore and West Auckland franchises, said Hobsonville was popular for its proximity to the water, large land supply and high-quality new houses. Hundreds of people had now visited the firm's show home, he said.

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But Whats On showed G.J. Gardner was building far more houses last decade. In the year to September 2006, it put up 677 houses.

Grant Porteous is managing director of Deacon, which holds the New Zealand master franchise for G.J. Gardner.

"We've only been in New Zealand since 1997 and been the largest builder for over a decade. We've built over 7000 homes and all those are individual purpose-designed. We're not a cookie cutter builder," Porteous said.

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He and his wife, Ellie Porteous, own half of Deacon with two partners controlling 25 per cent each.

"At one stage we were building new homes worth $270 million a year. It's a reasonable size for our company," Porteous said. Gardners have 25 franchise outlets or offices in New Zealand.

Statistics New Zealand has highlighted the slump in new house building after consents fell from a peak last decade of about 28,000 to just 14,000 annually now.

A Housing Corporation business is developing Hobsonville Pt, which is being managed by AV Jennings. No state houses are rising there, a point being firmly hammered home by marketing and sales staff for fear of putting off buyers who might not want to spend up to $700,000 to find state tenant neighbours.

Discover more

Opinion

Damien Grant: Slums to replace decent housing

14 Jan 04:30 PM

Yet Hobsonville Pt originally started as a state project and its development remains with an arm of the Government.

Further, 17 properties have been developed with assistance from the Government's Gateway Home project where land payments are suspended for 10 years so the properties are more affordable.

Industry criticism of the Hobsonville project includes small houses and tiny sections, extremely narrow streets, high prices for the area so far from the city, inappropriate placement of garages near living areas and even more intensive development to come with large-scale terraced housing.

One industry chief said he was shocked at how narrow the new residential roads were and one wrongly parked car could cause street blockages so the laneways were dangerous because residents could be trapped. He also questioned why people would buy so far out at Hobsonville when Stonefields closer to the central city area offered quality houses on bigger sections with wider streets.

Whats On showed Stonewood Homes was the country's second-largest builder, putting up 290 houses worth $90 million but selling for a higher average than the top-ranked builder at $313,035.

Ryman Healthcare, the NZX-listed retirement specialist, is third-ranked with 289 houses worth $35 million but at a much lower $124,435 average because its places are smaller at just 147sq m on average and all within its villages.

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Gardner and Stonewood are building houses averaging 207sq m and 214sq m.

Fletcher Residential ranked next with 283 houses worth $76 million and selling for an average $269,596. Jennian Homes built 216 places for $63 million, Mike Greer Homes did 187 houses for $45 million, Golden Homes 164 places for $49 million, A1 Homes 161 for $37 million, Classic Builders 143 homes for $34 million, Hawkins Construction 120 homes for $16 million, Versatile/Totalspan 118 for $21 million, Signature Homes 101 for $35 million and Horncastle Homes 96 for $22 million.

Ryman topped the list as the country's largest multi-unit house developer, followed by Hawkins, Aspec Construction, Fletcher, Kalmar Construction and Redican Allwood.

BUILDING BIG

Hobsonville Pt price range:
* Jennian Homes, Station St: $389,296
* Jalcon Homes, Lester St: $549,000
* G.J. Gardner Homes: Lester St: $635,000
* Universal Homes, Station St: $705,000

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