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Home / Property

Is pre made the new normal

Diana Clement
By Diana Clement
Your Money and careers writer for the NZ Herald·NZ Herald·
26 Jan, 2016 04:00 PM4 mins to read

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What Kiwi hasn't heard the word "prefab"? But school rooms and offices, the most common prefabs, are no longer the only pre-fabricated buildings being constructed. Increasingly, homes are being built with prefabricated parts.

It's remarkably expensive to build one-off houses as most Kiwi building companies do. Much cheaper and quicker is pre-fabricating homes off site. The construction doesn't even need to be done in New Zealand.

Some Kiwis have even created designer homes from containers, and at the other end of the market, pre-fabricated homes appear on Grand Designs, such as Wellington's Cliffhanger home, says Prefab NZ chief executive Pamela Bell. Prefab homes were also showcased at Christchurch's Home Innovation Village, the HIVE CH.

Bell says prefabrication can reduce the cost of a home by up to $40,000.

Not only does prefabrication save money, it could help reduce the home shortage in New Zealand. In Auckland alone, 400,000 more homes are needed over the next 30 years.

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There's a misconception that prefabricated building parts are somehow substandard, says Bell. The reality is that pre-fab construction takes place in a controlled environment with precision measurement and cutting and is not affected by adverse weather. Construction in a factory offers time savings of 30 to 60 per cent, cost savings, reduced material waste, increased energy efficiency, employment stability for employees, design variation and other factors, says Bell.

She adds there are great benefits to building large chunks of a home away from the construction site. "You wouldn't build your car in your driveway would you?" Technology has moved from mass standardisation in the last century to mass-customisation now. Bell says the primary challenge to prefabrication is socio-cultural misconceptions. The reality is that a prefabricated home has the same guarantees as one built on site. Other challenges include the cost of starting up a prefabrication supply business in a small market.

The majority of pre-fabricated homes in this country are made in factories in New Zealand, although there are significant economies of scale in having homes built offshore. So far, there are few suppliers of Chinese prefabricated homes. Only four of Prefab NZ's members are involved in the supply of Chinese-made homes, although Bell expects to see the market grow.

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One such Chinese-prefabricated home was bought by Sally and Carl Feinerman. The proof is in the pudding for the Feinermans, who have been living in the EcoTech Homes house since March 2015. The Feinermans' previous house in Roxburgh had burned down and they chose the Chinese-built replacement after visiting a similar home in Christchurch.

The Feinermans found it a little odd receiving photos of their build as it progressed in China instead of seeing the house being erected slowly before their eyes. They also worried that some of the changes they required of the standard plans might be "lost in translation", says Sally.

The home they moved into, however, was a cut above anything they could have built in New Zealand for the same money. "We felt we got a better-quality product and finishing than we would for the same price here. Some of the quality features at a budget price include floor-to-ceiling doors and shower, and a waterfall benchtop.

The Feinermans' electricity bill last winter was never more than $150 a month, which Sally says was amazing for the South Island.

Prefabricated homes from China can be bought from giant Chinese online marketplace Alibaba.

But there's a catch. All materials in the home must be approved and tested here and meet the Building Code.

Realistically, the only way to buy a home prefabricated in China is through a New Zealand distributor that has obtained the approvals already. This bumps the cost up hugely, but it can still save money when components are delivered ready to erect.

EcoTech Homes founder Tony Frost says he turned to China out of frustration after being pinged repeatedly for increased labour or materials costs in New Zealand. Frost, a builder since age 15, says in the old days prices would change during negotiations with clients. Frost considered setting up a factory in New Zealand, but couldn't make the numbers work. Instead he worked with suppliers in China to provide a quality eco-friendly pre-built product and had it certified by the then Department of Building and Housing for all locations in New Zealand.

The parts, down to carpet, paint and appliances are shipped to New Zealand in three "modules" which are the equivalent size of 40 foot and 20 foot containers.

Once on site, it's a bit like assembling Lego, says Frost.

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The walls are erected and connected with large steel connecting plates all within a week.

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