Rising houses prices fuelling new builds in Hawke's Bay

Tumu Timbers general manager James Truman (left) and sales manager Andy Verryt have more on their plate thanks to Tumu's new pre-framing business Tumu Frame and Truss. Photo/Warren Buckland

Tumu Timbers ITM has bought Total Building Solutions thanks to a hot property market.
Renamed Tumu Frame and Truss, Tumu managing director John O'Sullivan said its capacity was being expanded to meet increasing building activity.

"They were our frame and truss suppliers for many years and we wish to focus its operation on that."

The Omahu Rd business will no longer sell general building supplies, with its stock transferred to Hastings, Havelock North and Napier Tumu ITMs.

"When people come to a Tumu ITM store they expect the full range of supplies so we didn't want to confuse customers. The renaming will add clarity to that."

Mr O'Sullivan said a demand-driven increase in house prices was fuelling building activity. The region's population was increasing and an improved economic environment was providing confidence.

"With house prices going up it is making the building of new houses a lot more viable."

Hawke's Bay July values were up 25.8 per cent compared with July last year according to Reinz.

Frimley Lifestyle Village recently completed the community centre for its 100-resident development.

Three dwellings remain in the current stage and the upcoming final stage of 21 will go to market later this year - 41 of the 66 dwellings have been sold.

"We quickly sold 13 villas in May and we are now close to selling out the current stage, Village general manager Paul Reeve said.

Reinz figures showed Hawke's Bay to have the lowest level of house listings nationally this year.

Valuer Andrew White, of My Valuer, said there were many older people wanting to trade down "but they have nowhere to go".

"It sounds like a cliche but there is nothing on the market," he said.

High demand was meeting lack of supply, driving up prices.

"We have a range of buyers in the market, from first-home buyers through to second and third-home buyers plus the migrants out of Auckland. The market is being driven from all angles as a result."

Mr O'Sullivan has the solution.

"We need more house out there, so let's get out there and build."