Warehouse founder’s housing moves
The Real Estate Institute has backed Warehouse founder Sir Stephen Tindall’s interest in KiwiBuild, indicating that if anyone can bring down house prices in this country, it’s him.
REINZ chief executive Bindi Norwell welcomed Tindall’s announcement that he was assisting one of the 102 off-site manufacturing KiwiBuild tender parties and said it was potentially great for the sector.
House prices rose 67 per cent in the last 10 years making it extremely difficult for people to buy, she said.
“Affordability and supply continue to remain two of New Zealand’s most fundamental issues when it comes to the housing market. The ability for young people to get onto the property ladder has become increasingly difficult with median house prices across New Zealand rising 67.8 per cent over the last 10 years from $335,000 in October 2008 to $562,000 in October 2018,” Norwell said.
In Auckland, the situation was worse with prices rising 98.9 per cent in a decade, from a median $435,000 in October 2008 to $865,000 last month.
“It’s no wonder home ownership is at its lowest point in 60 years,” Norwell said so Tindall’s interest in a scheme like KiwiBuild came at a good time. KiwiBuild and the creation of the Housing and Urban Development Authority should help to speed up the consenting process and address supply problems, she said. “But we still need to address the affordability problem. Any initiatives, innovative new approaches or offshore examples Sir Stephen Tindall can bring to New Zealand to help bring down the building costs are to be welcomed,” Norwell said. Tindall questioned why New Zealand can’t follow other countries that build homes for half the price of ours. Asked to comment after Housing Minister Phil Twyford this week announced 102 bidders for pre-fab KiwiBuild homes, Tindall indicated that he saw it as a promising move and revealed that he had a fringe involvement in the industry.
Twyford said 102 parties from New Zealand and overseas had put forward their ideas.
Companies were asked to propose ways they could help KiwiBuild boost the housing supply, increase productivity and build affordable places for first home buyers, he said.
Innovative offsite manufacturing was a key part of the KiwiBuild plan to enable innovation and scale to drive a real step change in housing, Twyford said when he announced bidder numbers.
“I have been giving some logistics advice on a confidential basis to one of the submitters but have agreed not to disclose their details,” he said of one of the 102 tender parties.
While Sir Stephen has previously been involved in affordable housing through the Tindall Foundation, his interest in this case is strictly personal. “Compared with the past, housing has become too expensive for the average couple and we need to combine talents to solve this issue.”