Director attacks building costs

Press, 26 September 1989, Page 9

Director attacks building costs

PA Wellington Building costs in New Zealand are twice as high as in the United States and 30 per cent higher than in Australia, says the director-general of the Housing Corporation, Mr Rob Carter. He told the national housing symposium in Wellington that it cost $514 a square metre to build in Whakatane and $742 in Waikanae. Builders needed to look at bulk buying and other sources of supply. Mr Carter said the housing industry suffered a lack of innovation and design. The industry had failed to address the quejjtion of how to tradi-

tional home access in a context of high building costs, without dropping standards and creating further ghettos. Lack of innovation and building design and poor subdivision development was leaving its mark in New Zealand. The same lack of innovation applied to mortgage lending. The industry needed to be encouraged to keep pace with changes in the consumer base, he said. This included understanding demographics which included smaller and different households. The tendency had been to shrink the traditional bungalow and put it on crosslease sections, all in the name of things being cheaper.