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View Full Version : Why NZ House Construction Cost So High?



Winston001
19-11-2005, 09:03 PM
I've never popped in here before. Clearly Mac doesn't sleep - posts on every forum going. :D

So this is similar but separate to Mac's thread.

I'm involved with Habitat For Humanity which is a charity which helps families to build low-cost affordable houses.

House construction in Australia and even parts of the USA is cheaper than here. I don't get it. Why?

People I've asked talk vaguely about different construction methods and regulations but I can't see the Aussies or Americans accepting houses falling to pieces around them. In fact a builder friend can't believe the low cost in Australia either.

Anybody know?

Sideshow Bob
20-11-2005, 01:45 AM
JBmurc has a few comments on the 'average building costs' thread.

Winston001
20-11-2005, 07:23 PM
Thanks Bob, it is a good thread and I don't want to distract from it.

However instead of focusing on local building costs, it would be interesting to know how these shaped up internationally. And where the differences may lie.

One element is the "Shaky Isles" problem. Flexible framing is a luxury and comes at a cost.

duncan macgregor
21-11-2005, 01:40 PM
Why so high you ask?. To develop land to build on you must go through hell to get consent, which means paying for everything under the sun countless trips to the council, who blackmail you into donating land back, paying for roads that exist it is a nightmare. When you get through all that crap, you must have engineers reports on house sites, drawings of the house numerous visits to the council, more engineer reports, rule changes that they spring on you halfway through a project, and on top of all that a building code devised by people that havent a clue. I can buy NZ framing timber cheaper in Sydney than i can buy it in Auckland. The only country in the world that insist on stainless steel bolts under a house. Dont beleive me then go to the council and ask them to give you a copy of the handrails specifications for a sun deck. If you really want to confuse them ask them if its galvanised or stainless steel bolts you should use. NZ has the biggest bunch of clowns in the world running the building game therefore the highest costs. macdunk

trendy
27-11-2005, 02:02 AM
Maybe it's the tax ...every new home in NZ contains 12.5%GST. Here state sales tax varies but generally not more than 5%. But lumber/timber and bulding materials here are cheap. Most new homes here now have 3 car garaging, zillion rooms, and average 4000sqft. Don't forget the basement also.

ari
27-11-2005, 09:23 AM
One comparison I noticed with my last project was for roofing. Colour steel roof say $12,000 here in NZ...same roof in Aussie $6,500. And we probably export the stuff to Aussie!
And as for framing timber, cheaper in Aussie and probably our timber.
Lodge which is currently for sale in Karipiro had all it's framing timber imported from Aussie and still saved money.

dinosaur
28-11-2005, 08:13 AM
I just had a new technical manual for a building product dropped off to me. That's so I can copy the relevant information in it and give it the the council with the Building Consent, as they want 'job specific' information as required under the new Building Act, although the council has the manual too. I now put about a telephone book size of techinal information in with each consent, so not sure how the Councils are going to store all this information.

The rep told me the manual cost over $100K to produce. The product has been around for years and can't be purchased by the public, as licensed installers can only provide and install it.