Supply chain challenges and labour shortages changing home buyers’ dynamics in Ponsonby real estate.
Auckland’s inner-west residential property market is seeing the effects of the ‘perfect storm’ in the residential construction sector… international and domestic product supply chain disruptions, labour shortages, and incredibly high numbers of building consents requiring work to be undertaken, according to a senior figure in the real estate sector.
Bayleys Ponsonby salesperson Blair Haddow said more and more potential buyers coming through his open homes were indicating they were now looking for ‘turnkey’ homes - with all renovations and modernisation done – rather than for ‘doer-uppers’ requiring building and construction work to be undertaken.
“Traditionally in Ponsonby, Herne Bay, Grey Lynn, and Westmere, there has always been a portion of the market looking for homes that they can add value to by improving the living spaces or adding more rooms for example,” Blair Haddow said.
“However, concerns over supply chain issues encompassing accessibility to and deliver of building materials and supplies, along with the rising costs of those building materials and supplies, are being compounded by a shortage of residential tradies ranging from hammer-hands, builders, and swimming pool landscapers, through to concrete layers, qualified electricians, plumbers, and roofers.
“Tradespeople and building suppliers have publicly stated they are struggling to get their hands on such basic materials as exterior and interior cladding, timber, GIB plasterboard, roofing iron, and aluminium window framing. Those ongoing delays for a wide range of products are anecdotally stretching the renovation time for an average house from five months to 12 months.
“That’s before we even talk about building and tradie firms having to stand down staff who have to self-isolate at home if they are defined as being a close contact of anyone with Covid-19 – a phenomenon which is now taking a sizeable chunk out of our working population who need to be ‘on-site’ to complete their employment.”
Compounding the new build dilemma, prices for building a new dwelling increased by 16 percent in the December quarter, compared with same period in 2020, with forecasts from the building sector of a further 15 percent hike in the price of house construction products in the coming year.
“It all adds up to buyers now wanting homes where all the ‘work’ has already been done, so that the new owners don’t have to worry about any of those building issues,” said Blair Haddow.
ASB's Quarterly Economic Forecast report out in February confirmed what Bayleys Ponsonby was hearing, that housing construction levels were not only being hampered by material supply chain issues, but also by labour shortages – short term through the disruption of Omicron, and medium to long-term by border immigration restrictions.
In line with this trend, Blair Haddow has just listed up two beautiful ‘ready to move in’ homes for auction in April.
First up is a magnificent contemporary dual level four-bedroom/three-bathroom/three-living space home at 3A Hope Street in Westmere. With an in-ground heated swimming pool and double car garaging big enough to contain a home gym, the north-facing home looks like something straight out of the pages of the latest interior design magazines.
Clad in Hinuera stone and exuding luxurious comfort, this sophisticated home has inner harbour water views and was built to the owners’ high design specifications to provide classy living through its multiple open-plan entertaining areas. The master bedroom in its own wing in the upper level overlooking the pool has its own balcony as well as a walk-in wardrobe and separate substantial ensuite bathroom.
Next on Blair Haddow’s books is a three-bedroom/two-bathroom/two-living space residence at 17 Harcourt Street in Grey Lynn, which has been superbly modernised and features a living pavilion beside the in-ground swimming pool in the back yard.
“With both of these beautiful dwellings, the current owners have already done all the hard work over the years - remodelling and improving both inside and out to deliver simply beautiful homes ready to live in now,” said Blair.
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