How much will your dream house cost?

Press, 8 February 1986, Page 14

How much will your dream house cost?

Home Line with

Bill Harrison

The urge to build one’s dream house soon leads to the question, “What does building cost per square foot today?” The answer will mean different things to different people and will often be disputed as 'to accuracy. Christchurch still enjoys the lowest house building costs in New Zealand. A standard 94 square metre (1000 sq ft) house now costs $504 per square metre, according to the December issue of a national costing magazine, “The N.Z. Building Economist.”

It is the lowest figure for any area in New Zealand but spare a thought for the home-seekers .of Otago-Southland who suffer the highest cost figure of $544.36. House building costs, based on a notional model house, and stated in dollars per square metre will at best confuse the uninitiated, and to many will prove to be quite misleading. Smaller houses often have much higher costs per square metre than large houses.

Square metre . figures are interesting for statistical comparison, and little else. Indeed, the “Building Economist” prefaces its figures with the statement “that these figures are gross assessments only and are of general interest and comparison rather' than for quotation.”

Figures are also given for an Executive House of 118 square metres. Here, Christchurch is second lowest at $670, with Otago-Southland still highest at $703.06 per square metre. A quick check with local builders suggests that the figures for a 94 square metre house may be too low. A more likely average price is $535. Raised eyebrows and an expression of disbelief seemed to indicate my questioner, a young Canadian woman, thought that $5O plus per square foot

was too much for a new house.

“Does that include the Lot?” she asked. Resisting the urge to reply, “You don’t get ’ a lot for that price,” I explained that land was not included.

The average price of (lots) sections currently offered for sale in Canterbury is $30,800, ranging from $90,000 for a section in Straven Road, to $5500 for a site in Springfield. Soon another Canadian tourist was asking the “What does it cost” question. Tom Bayley, a qualified structural engineer has chosen to work as a restorer of older houses, a growing business, in his home town of Toronto.

Mr Bayley’s obvious interest, and knowledge of housing caused me to consider his observations that house prices had risen noticeably since his last visit five years ago, and that material prices, particularly lumber, were very high. A check of the “Building Economist’s” standard house figures indicated a rise of 57.5 per cent since December 1980 when the cost was only $320 a square metre. A December 28th edition of the Brisbane Courier Mail at the Public Library provided an interesting overseas cost comparison and an im teresting use of cost per square metre figures in the advertising of new houses.

A sketch of the house, a brief description, the floor area, a plan, the total price, and the cost per

square metre are all shown.

For example just two of the houses offered by Mansard, Australia’s second biggest home builder — both are brick with tile roofs.

The Colonial Mark 11, four bedrooms, ensuite, and gamesroom, 186.65 m at sAust29l per m. Total, sAusts4,3oo. (In N.Z. dollars, $395.76 per m. Total $73,484.) The Lakewood 3, three bedrooms, sunken lounge, area 94.5 m at sAust327 per m. Total sAust3o,9oo.

(In N.Z. dollars, $444.72. Total $42,024.) The Brisbane comparison shows a clear $lOO per square metre lower cost, but may be unfair. Qiieenslanders give some credit for their building cost efficiency to a Sir Joh Bjelke-Petersen, obviously an architect of some merit.

New Zealand building material prices are very high and continue to rise. This week the price of Rimu (red pine) and Kahikatea (white pine) timbers were increased by nine per cent. Research to minimise material and labour content in houses continues but ever increasing costs will soon preclude all but the most fortunate young first home seekers from the new house market. Builders will then be left with only a replace•ment and renewal market for a zero growth population and the Minister of Housing will be left with a growing demand for rental accommodation.