Auckland Building Costs: What To Expect in 2022

Auckland Building Costs: What To Expect In 2022

What does it cost to build a new home in New Zealand in 2022?

We on average are building more houses but they are getting smaller, especially with the proliferation of many town houses being built on what was once a single site. Auckland remains the most expensive place to buy a property in New Zealand, with Wellington following close behind. The National average build cost in 2020 was $2360 per square metre and in 2021 was $2460. From 2021 to now, this cost has skyrocketed to an average price of $3500 per square metre and it is continuing to rise.  This $3500 per square metre does not include the following costs:

  • The costs involved in purchasing and obtaining the land (real estate agents, legal fees).
  • The design (architects) and consent fees (Resource Consent and Building Consent) which can be anywhere between 5-10% of the overall build cost.
  • Foundation and subfloors (concrete or timber and piles).
  • Earthworks, drainage, retaining walls, septic tanks, retention tanks.
  • Engineering and quantity surveying fees.
  • Landscaping, fences and driveways.
  • Services such as fibre, gas, electrical and water to the dwelling.
Five price increases in the last 7 months

In the last 7 months (since August 2021) we have had five price increases in material costs, fuel prices have pushed up freight costs for the delivery of materials, inflation is running at 5.9% and mortgage loan rates are sitting around 5%. Labour costs have also increased due to the shortage of skilled tradespeople. A Quantity Surveyor can work out the cost of a new build, but their figure is only as good as the data that goes into it.

When building consent applications are submitted to Council, the build value is often lower than the actual cost of the build. This is because the value of the cost of the build determines the cost of the consent fee. An architect may say the build cost is $2500 per square metre but the actual build cost is more like $3500 per square metre.

The cheapest build is a basic rectangle shaped house.

Home Builders Auckland
Items that will increase build costs are:
  • Elevated sites
  • High wind zones
  • Unstable ground
  • Large areas of glass (require steel portals)
  • Anything that is canter levered (floors, roofs, walls and decks)
  • Difficult site access
Be wary when comparing different building quotes

When comparing different building quotes, make sure you compare the same things (like for like) and be weary of cheaper quotes. These cheaper quotes have probably left out items that will be added later as a variation to the scope of works and you will still have to pay for it. Some building companies do this on purpose to secure the contract for the job then add all the extras at the end. A good rule of thumb is that you should allow 10% for unforeseen costs or changes to the plan. Due diligence is the key to streamlining any new build.

There are many benefits to a new build compared to purchasing an old established house. Firstly, the building will meet all the new building codes and standards. This means the house will meet all the requirements of the Healthy Homes Guarantee Act 2021 and will be dry, warm, double glazed and have a good, practical layout. Secondly, and most importantly, you get what you want, as it is your design.

Owners looking at quotes from perspective builders must take into consideration the many indirect (overhead) costs. Building companies must cover these costs month to month which are factored in as a percentage of each build. Some of these Indirect costs are:

  • Project Management Fee (this fee consists of a percentage of the scope of the works, typically 5% of the cost of the project)
  • Legal fees
  • Accounting fees
  • Website maintenance
  • Office rent
  • Administration staff/stationary/equipment
  • Health and safety
  • Human resources
  • Vehicle maintenance
  • Quote for the job
  • LBP and Master Build Registrations
  • Licences for the computer software
  • Marketing and advertising
  • Insurances (Public liability, Professional indemnity, Equipment, Vehicles, etc)  
  • ACC
  • Margin (profit)
  • GST
The cost of building is getting more expensive

The cost of building is undoubtably getting more expensive as time goes on and these costs must ultimately be passed on to the owner. At the present time it is the perfect storm for increasing costs; as land prices are increasing, there is a shortage of trades people and due to global supply and constraints building materials are going through the roof. Then we have also had Covid-19 disrupting everything. At Villaworx Construction we believe that costs in general will continue to rise in the foreseeable future so if you are planning to build you should budget for more than you think that the cost of the build will be.

The Process of Building a House

The Process of Building a House

The Process of Building a House

The first stage in building a house starts with planning. Time spent planning here looking at the range of building materials, different features, house designs, and designers’ works (architects) will save you money and time. Go look at open homes, completed projects online and magazines to gather exciting ideas for your beautiful home.

At Villaworx Construction we say, “it is better to take your time at the planning stage as changes down the track can become costly”. Making any changes after the process of building has begun can cause building delays and be expensive.

The Designing Stage

The designing stage is the most enjoyable, exciting phase of building your own home and as it is where you create your home in your imagination and put it to paper. This is where your dreams become your visionary reality. The crucial aspect to a successful project is the design process.

To ensure the build is just right, ideas will be discussed, re-worked, re-thought and digested many times with you and your home designer until the perfect solution has been achieved. After you have decided the house design you want, and what it will look like, you then work out the price you can afford and how you are to pay for it.

A professional such as an architect can help with this process as they bring understanding, experience, imagination and knowledge to work with you to make your project the best it can be. An architect can customise a build specifically for you that is unique, intrinsic, has elements that you personally value and is within your budget.

Remember compromise is fundamental when it comes to your budget, but design looks can be achieved by smart building and using alternative building materials.

The Construction Process

Now that the dreaming, planning, and design stage is over it is time for the construction process to begin, when the hammer hits the nail and you see things start to happen. Watching your new home rise from your plans is fantastic but you need to constantly review things and stay on top of what is going on to ensure your building company is building it right.

Ensure there is a health and safety plan on site, a building contract signed, and all insurances are in place before your home construction begins. Check that the building company follows the building plans, the building code, scope of the building work and that all the building materials used are the ones specified and are installed correctly.

A Typical Order of Construction is as Follows:
  • The setting out of the building,
  • site excavation,
  • foundations are laid,
  • concrete floors are poured or sub-floor framed up,
  • wall framing is constructed,
  • roof trusses and framed and placed,
  • joinery is installed (windows and doors),
  • exterior cladding is put on,
  • plumbing and electrical is fitted out,
  • insulation is placed,
  • internal doors are fitted,
  • interior linings (Gib) are fixed,
  • interior plastering and painting,
  • waterproofing any interior walls/floors,
  • tiling of floors and walls,
  • cabinets are installed,
  • final plumbing and electrical work (fixtures and fittings),
  • paint the outside of the house and any finishing work,
  • floor coverings are laid,
  • open a bottle of champagne and have a glass as you are finished!

When all of this is completed and the final inspection is carried out, your home is finished, and you are ready to obtain a Code of Compliance Certificate from the Council.

Things to Keep in Mind

During this whole building project, you the homeowner must be prepared to endure major frustrations and stressful moments, accept that it will take up a lot of your free time (typically 12 months) and may exceed your planned budget.

Building projects can take longer than what was estimated due to delays caused by material shortages, subcontractor availability, the weather, etc. Communication is essential to any good building project by allowing work to progress smoothly and foreseeing of any potential problems that could become costly.

At Villaworx Construction we see a good relationship and clear communication as the key to a successful building project. Your building company becomes your crucial partner in this whole process, so choose one whom you can trust.

Old Villa Renovation Ideas

Old Villa Renovation Ideas

New Zealanders love older homes like villas and bungalows as they have charm, appeal and special characters that you ordinarily just can not buy from new.  Typically villas also have downfalls such as, bad layout for indoor outdoor flow, drafty/cold and damp. Despite this we can excuse them for this as they are relatively easy items to fix. DIY is in our blood and we are all suckers for a renovation.

At Villaworx Construction we feel that the most important thing to get right when modernising an old villa or bungalow is the cohesion between the old and the new. Without good aesthetic flow, any extension will feel unconnected and just thrown on. The new part of the villa or bungalow has to be clean, modern and continue the same colour scheme and building material throughout the house for continuity. The renovation process can be broken up into four basic categories, Basics Reno, Curb Appeal, Value Added and Personal Preference.

 

New Zealanders love older homes like villas and bungalows as they have charm, appeal and special characters that you ordinarily just can not buy from new.  Typically villas also have downfalls such as, bad layout for indoor outdoor flow, drafty/cold and damp. Despite this we can excuse them for this as they are relatively easy items to fix. DIY is in our blood and we are all suckers for a renovation.

At Villaworx Construction we feel that the most important thing to get right when modernising an old villa or bungalow is the cohesion between the old and the new. Without good aesthetic flow, any extension will feel unconnected and just thrown on. The new part of the villa or bungalow has to be clean, modern and continue the same colour scheme and building material throughout the house for continuity. The renovation process can be broken up into four basic categories, Basics Reno, Curb Appeal, Value Added and Personal Preference.

 

"At Villaworx Construction we feel that the most important thing to get right when modernising an old villa or bungalow is the cohesion"

New Zealanders love older homes like villas and bungalows as they have charm, appeal and special characters that you ordinarily just can not buy from new.  Typically villas also have downfalls such as, bad layout for indoor outdoor flow, drafty/cold and damp. Despite this we can excuse them for this as they are relatively easy items to fix. DIY is in our blood and we are all suckers for a renovation.

At Villaworx Construction we feel that the most important thing to get right when modernising an old villa or bungalow is the cohesion between the old and the new. Without good aesthetic flow, any extension will feel unconnected and just thrown on. The new part of the villa or bungalow has to be clean, modern and continue the same colour scheme and building material throughout the house for continuity. The renovation process can be broken up into four basic categories, Basics Reno, Curb Appeal, Value Added and Personal Preference.

The Basics Reno are renovations that potential buyers would expect if they were to purchase a home. This would include a structurally sound roof, solid floors, walls that are in good condition and retaining walls that are not collapsing. With good regular maintenance small improvements can keep the property in good order.

 Renovations that add Curb Appeal allow the property to look good from a street appeal prospective. These projects do not add a considerable amount of monetary value to the property, but at first glance make the property more appealing. These curb appeal items include lawn, landscaping, paint inside and out, new carpets and fixtures, splashbacks, lighting with installing LEDs. Consultations for interior design with an interior decorating professional are considered useful.

The renovations that add considerable value are the Value Added renovations or fix-it-and-flip-it renos. These include upgrading kitchens with state of the art appliances, new joinery, modernised bathrooms, refurbished decks, and advanced energy saving additions such as insulation, HVAC, underfloor heating and heat pumps and the use of E-glass or double glazing.

Personal Preference renovations are changes that you want but that other people may not like. These include tennis courts, swimming pools, games rooms, wine cellars, spa pools and ponds. These renovations can involve extensive structural work like removing walls to enlarge a space, Eliminating a bedroom to extend a room, remodeling a basement, adding a 2nd or third story, lifting a house to allow another level.

When considering a renovation project, you must ask yourself “what is the purpose of the renovation”. If it is to be your home for many years to come; add the amenities that you want (Personal Preference renovations), but if it is for investment or re-sale depending on your budget look at Value Added, Curb Appeal or the bare minimum a Basic Reno renovation. If unsure just what type of home renovation you require (to insure costs are utilised effectively) please do not hesitate to contact us for a free no obligation quote.

Villas nowadays make up a significant contribution of the building industry’s work. Numerous Villas have been renovated to a high standard with extensive work leaving only the street façade remaining. Nevertheless, a lot of New Zealand Villas are yet to be upgraded and renovated. These remaining Villas are typically damp, cold and drafty and have a poor aspect. The layout of the service areas such as bathrooms are poor in relation to bedrooms and do not fit in with modern amenities.

Typical villa renovation trends today have shown that the street appearance of the Villa is being persevered, while the rest of the property has been modified and redesigned to allow for modern open plan living. Additions such as installing modern bathrooms and kitchens, room/extra levels or basement extensions, rewiring and re-plumbing, increased lighting (LEDs, skylights) and improving indoor outdoor flow.

Villas are majestic neoclassical pieces of architecture that deserve to be protected and preserved for future generations. People are keeping their street facade and totally renovating the inside and out back to accompany their modern lifestyles. These people who own these high quality villas truly receive the best of both worlds. 

Villa Style House Plans NZ

Villa Style House Plans NZ

Traditional Villas

Villas in New Zealand were typically built around a central corridor with rooms opening off each side. The room reserved for entertaining guests was called the parlour and was located directly off the corridor and contained a bay window. Family treasures and the finest furniture in the house would be on display in this room. 

The main bedroom was typically across the corridor from the parlour, facing the street. Any other bedrooms typically faced the side or back of the house. 

The kitchen, pantry and scullery were at the rear of the house, away from the street, located under a lean-to roof with a floor dropped to ground level. The kitchen area was for cooking (on a coal range) and dining. Wetbacks on the coal range provided water heating. 

Larger villas had a lock-up safe, a separate dining room and a pantry for food storage. Villas typically did not have bathrooms but instead had long-drop toilets, located in separate buildings at the rear of the section. The laundry was usually also situated in a separate building behind the main house and contained a kauri timber or copper tubb, for boiling water. 

Villa Styles in New Zealand

Villas in New Zealand come in five distinctly different styles, from the Workers cottage to the Trans Villa (Transitional Villa). 

The Workers Cottages were 2 – 4 bedroom cottages constructed in the mid to late 19th century and were used to house workers. They typically had close neighbours and had very little fret work (lack of frills). Over the years, improvements such as verandahs, second stories and other extensions may have been added. Government state housing schemes built many Workers Cottages in New Zealand.

The Victorian Villa became the prominent home in New Zealand from the mid 19th century. Constructed solidly using native timber, they typically had a high ceiling, small windows, front verandas and a large wide central hallway. This Victorian Villa was all about the appeal of the exterior, with fretwork and fennels. 

The Californian Bungalow became popular in New Zealand from the early 20th century and featured larger windows, less verandah detailing and lower pitched angled roofs. They were more of an open plan style, which allowed more light in. Features included exposed rafters, timber panelling on walls and a single clad, round bay window.

Bay Villas are a variation of the classic Victorian Villa. Their main feature was a faceted bay window on one side with a front verandah running to the side of the bay window. 

The Trans Villa incorporated the styles of both the Victorian Villa and the Californian Bungalow. It became popular to incorporate bungalow architecture into traditional villas. By the 1940s, the bungalow had gained so much favour that both the Villa and the Trans Villa were consigned to history.

Today's Villas

Villas have seen a revival in popularity since about 1980. Villa renovations are now a significant part of the building industry’s work. They count for over half of the renovations that Villaworx Construction perform. The renovations we carry out on these Villas are extensive and to a high standard. Generally the entire inside is gutted and modernised to various degrees, while the exterior is meticulously restored to its original state.  

Many of New Zealand’s 85,000 villas have yet to be upgraded and renovated. Typically, they are cold (no insulation), draughty (leaky sash, single glazed windows) and their spaces have a poor relationship to sun and site (bad aspect). Their service areas such as bathrooms are not well related to bedrooms (bad layout) and may lack what we consider to be modern amenities. 

Despite all these facts, once renovated, these houses can become amazing architectural masterpieces with all the modern comforts inside, yet keeping all the character and heritage on the outside. At Villaworx Construction we love taking on these projects as we are passionate about restoring these timeless architectural treasures back to their former glory.

If you’ve got questions or would like to discuss your villa plans in more detail, send us a message here