Wednesday, June 10, 2015

German versus NZ builds

A response to another idealistic article in the Press.

Consider the following differences between Germany and NZ:

1 - Germany has a 'right-to-build' in its Constitution.  A good summary is here.    Contrast that to NZ, where self-builds are effectively ruled out:  5 different LBP licenses are needed to build a typical dwelling:  Foundations, Structure, Weathertightness, Roofing, Joinery.    And the Planning and Consenting needed for a build is bordering on the insane:  a nice, recent example:  an acquaintance with a new home had its final inspection turned down because....the shower door was not present.  Against this sort of bureaucratic stupidity, the Gods themselves rail in vain, to mis-quote Schiller.

2 - the restrictive land-use policies of the old Town and Country Planning Act (long-repealed but casting a long and spiteful shadow) mean that the land price is inflated by delays (interest/carry costs), fees, levies, contributions, and scarcity.  The Productivity Commission notes that the ratio of rural bare land to urban bare land prices is around 1 to 10:  the 'urban zoning value boost' is solely a Planning-caused phenomenon.  If the land price is out of whack, so is everything else.  Germany was never infected by the Brit Planners (motto:  'We finish what the Luftwaffe started') disease.

3 - Building is, as the Planning Commission notes, a 'cottage industry' - only 5 builders in the whole of NZ put up more than 100 houses per year.  This is in contrast to Germany, where factory-built houses or large components/modules thereof, is the standard.  And factory build mean quality control, tight tolerances, building under cover, and fast build cycle times.  Whereas clonking together raw timber frames, as is the wont of 'builders' here, carried out by a motley crew of drug-tested hammer hands, with intermissions where the frames stand out in the rain for weeks, and where Elfin Safety adds $5-10K layers of cost at every turn:  scaff, fall protection, fencing, power tool certification, credentials needed to wipe noses, is the norm.  And then we wonder why builders concentrate on the top end and large builds if they possibly can.

To be certain, I would just love to see the sort of builds you mention, David.

But we are not going to get them, affordably, given current policy settings.  Starting with land prices.

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