LAKES BUSINESS SOUTHERN LAKES BUSINESS QUARTERLY
Modulo founder Mariano Croce and in-house designer Paula Martinez
Issue 33 | November 2023 Construction Special
LAKES BUSINESS
September - October 2023 | Issue 32
Population growth - where will they all live? by Sue Fea
Queenstown Lakes’ population is forecast to grow to more than 80,000 people by 2050. District council experts are confident there’s enough land already zoned for housing in the district for some years to come, but density of housing in both new and existing neighbourhoods is a hot topic, along with associated infrastructure. QLDC principal planner resource management policy Amy Bowbyes says councils nationally are required to increase housing intensity, focusing on locations accessible to commercial centres and local amenities. The council’s latest stab at this, the much talked about Urban Intensification Variation, proposes the controversial option of moving up, rather than out. Different types of housing is being encouraged in the variation, more town house-styles with smaller yards, enabling more affordable options, less than $500,000. Submissions closed last month, with more than 350 people having their say, many in opposition to the proposals. There’s controversy surrounding the variation’s fourmetre height increases proposed for Queenstown and Wānaka’s town centres, as well as proposed height increases in residential areas, especially Arrowtown. More than 300 people turned out to a public meeting in Arrowtown about the proposals in September. Leading, long-time local resource management lawyer Graeme Todd explained gave background information and submission tips at the meeting, which one of the local Village Association’s most attended. Todd says there will be conflict between Arrowtown’s Design Guidelines and the District Plan with what’s being proposed. “I suspect this variation could very well end up before the Environment Court.” That would delay the variation. Former planning commissioner and council planning committee chairman David Clarke was involved in various Planning Charettes in the 1990s and early 2000s, and 2022.
“Arrowtown’s Design Guidelines came out of that and they’re now statutory law so the council’s intensification plans providing for up to three storeys in Arrowtown are completely at odds with these guidelines,” Clarke says. Questionably, Arrowtown is being considered as a “suburb of Queenstown” under the national guidelines and its unique heritage character is being completely overlooked in the variation, he adds. “I can’t see any good urban design result coming from dropping that intensity into inner Arrowtown and it certainly won’t result in affordable housing. There needs to be some community discussion and buy in.” Clarke says Arrowtown’s population has increased by 300 percent since 1989. He’s concerned there’s no provision for extra parking, residents could lose sun for three months a year in a fiercely cold climate, and local firefighters currently don’t have the equipment to fight fires that high. A similar variation by the Christchurch City Council did not include Akaroa, possibly setting a planning precedent he says. QLDC’s Bowbyes says the medium density changes in the proposed variation have certainly garnered the most interest, potentially raising heights from 7m to 11m and 12m for pitched rooves. That would allow more efficient use of urban land and bring the district in line with others in NZ, she says. The local shopping centre zone would increase from 7m to 10m, allowing up to three-storeys. Height increases in Wānaka have proved equally controversial, as have plans to ‘upzone’ from medium to high density around central business districts. The closer to the town centres, the higher the density proposed, with housing density also increased along the hillside above Frankton Road. “We’re a very high growth area and we have to be smarter about how we use our urban land,” Bowbyes says. In terms of new development land, there are some 3000-plus potential residential sections in the pipeline
along the Southern Corridor, out towards Jack’s Point and beyond, and pockets of development land around Frankton. And some 2400 residential units could also be developed along Ladies Mile, if the Te Pūtahi Ladies Mile Variation is approved. A hearing is scheduled for late November. Across on the Wānaka side, the upzoned land at Lake Hāwea South has added capacity for 3100 more residential units. And a substantial area of land is already zoned at Three Parks for residential, commercial, and mixed-use development. Residents are concerned, however, at the impact all that housing will have on traffic flows, especially at the pinch points on Ladies Mile and coming into Frankton from the Southern Corridor. “With all that traffic from the Southern Corridor alone, including school buses, cars, trucks and tradies, traffic flow could increase by 10,000 vehicles in a few years,” one local resident says. “I don’t think people quite realise how bad that will be.” He’s already noticed traffic gridlocks starting earlier and forming from 3pm as people who can work from home alter their day to avoid the worst. “Tradies are starting earlier to avoid the traffic,” he says. Commuters from Wānaka and Cromwell, and residents from Lake Hayes Estate and Shotover Country, face the same situation which will worsen with more intensive Ladies Mile development. Bowbyes says the council is undertaking a structure planning exercise with landowners down the Southern Corridor to provide for future growth, which will require a variation to the district plan and may be notified next year. “Subdivision and engineering works would mean it may be years until these lots come to the market.”
SOUTHERN LAKES BUSINESS MONTHLY
September - October 2023 | Issue 32
Design and build by Paul Taylor
It began with a challenging site and a beautifully hand-drawn design for a house that could make the best of it. Now, Form Construction’s stunning project on Morven Hill above Lake Hayes is in the finals of the Registered Master Builders House of the Year awards, due to be announced this month. The 442sqm property, with four bedrooms, four bathrooms, two living rooms, media room and a fivecar garage, took home four awards at the regional finals earlier this year. It won a prestigious overall gold award, along with the awards for the best craftsmanship, the best bathroom, and took the category win for Builder’s Own Home. The project has been a labour of love for Form Construction director Hamish Noton, who lives there with his family. “When we bought the section, we knew there was not a lot of flat land there,” he says.
“So from the get-go, the house needed to blend into the land, to be built into it, and that set up the whole theme of the build, the form, where part of the house is buried, and the rest of the structure follows the contour of the land.” Noton sketched the functional design, with its strong exterior forms of schist, concrete, steel and timber, which was then translated into CAD format by an architectural technician. The project took about three-a-half-years to complete, including the meticulous site and land stabilisation carried out before the physical construction of the home. “It was definitely a Covid project,” Norton says. “As designer and builder, it kind of consumes you, and under that period of construction you have a lot of time to think about things, to distil your ideas, and the opportunity to evolve the building as it’s being constructed.
“We’re pretty pleased with the outcome, and the way it sits into the land.” Inside, black steel features on exposed structural beams and trusses, a hovering fireplace, firewood storage and a floating staircase, where treads merge into balusters in a single sculptural piece. “We’ve got two standout stairwells in the home and I love the steel and the way the strong structure marries in with the use of timber and the natural products, just warming it and bringing a softness to something that can be quite hard,” Noton says. Polished concrete floors also add to the vibe, mixing the industrial with the luxurious in this airtight passive house. Timber is another recurring theme, found in the feature walls, ceilings and custom cabinetry in the kitchen, walk-in wardrobe, covered outdoor entertaining spaces and marbled bathrooms. That includes the award-winning luxury loft bathroom, which judges said “showcases a brilliant incorporation of an open floor plan, offering both functionality and privacy within its annex”. They also praised the “bold choice of tiles, carefully selected joinery materials, exquisite fittings and fixtures, and subtle lighting” which all contribute to the design and enhance the luxurious appeal of the bathroom. In the judges notes on the craftsmanship award, they highlight the array of custom-made features and finishes. “Every aspect of the house, from its architectural design to the smallest detail like the kitchen joinery handles, demonstrates a commitment to precision and completion,” the judges said. That’s something Noton finds particularly gratifying, after delivering more than 15 high-end Queenstown projects over the years. “As a company, we really pride ourselves on quality and the craftsmanship, so it’s definitely rewarding to hear that, and also to live with that.”
LAKES BUSINESS
September - October 2023 | Issue 32
High-end market growth continues by Sue Fea
Recession? What recession? Clients of a leading specialty high-end Queenstown construction company certainly aren’t feeling the pinch. In fact, twin brothers Pete and Paul Rogers, of RBJ Builders, are getting busier. It’s taken almost 30 years of consistency, ensuring quality builds to gain an excellent word of mouth reputation that ensures those high-end builds keep rolling in. High net worth clients don’t seem to be as affected by economic downturns. “During the 2007-2008 GFC (Global Financial Crisis) we grew from 12 to 55 tradesmen within six months,” Paul says. Covid was tough, although work was still plentiful. They’ve had clients who started with a $6m build and watched that skyrocket 30% to $8m-plus, all due to increases in the cost of material and labour. Each build usually takes several years, and they sometimes begin the planning process with clients and their architects five years ahead. Their growth trajectory can be traced to the mid-1990s when the brothers got their first big break building a large high-end Commonage home for a wealthy family. “We were in our 20s, but they had confidence in us, and we did a good job,” Paul says. The pair had been introduced to the high-end market at a young age by retired Gore builder Paul O’Connor, who later asked them to join him building Sir Michael Hill’s upmarket Arrowtown home in 1994. Their own business grew to a peak of 55 tradesmen
in 2010, settling at a skilled team of about 40 and a reputable network of sub-contractors, who’ve stuck with them. These days Pete and Paul don’t don the nail bag as often, and are leading two of four crews working around the district and focusing mainly on product co-ordination. At an average $10,000 per sqm - these days more like $12k to $15k, most of their builds are worth between $10m and $12m, often up to $20m, with some worth tens of millions. No expense is spared and while most of their clients are from offshore - a lot of investment bankers among them, many are also ex-pat Kiwis who’ve succeeded overseas. Americans, English, and Australians make up most offshore owners though. “We’ve found working with them all to be very rewarding.” Hydraulic doors and sliders can be specially designed by hydraulic engineers. Solid 10mm structural steel has become fashionable in the last few years for features like cladding, folded balustrades, stairs, and bookcases. External feature doors can cost as much as $100k. RBJ Builders won ‘FritsJurgens Door of the Year’ internationally for its part in helping design and build an entry door. One Millbrook home had 18 custommade doors, each taking more than six men to lift. Like anyone, high net worth homeowners can be quite competitive, enjoying the latest fashions in their home, investing huge amounts in artwork. Specialist
bathroom and artistic light fittings can cost anything from $10k to $100k. Most functions are fully automated, like lighting, stereo systems and even fountains, Paul says. Plumbing is another huge cost with high pressure and filtration systems, underfloor heating, air conditioning and even geothermal bore holes drilled deep underground to use the thermal gain. “We’re seeing much higher demand for sustainable, energy efficient features, including big solar fields to go off grid, hydro from streams and use of natural springs, even wind turbines.” It’s a stressful business at times and naturally clients have high expectations. Every detail in each custom build needs to fit to millimetre perfection and there’s no room for error in any of the works that could expose the brothers to huge risk. “With 10-year guarantees for workmanship on all building we’re very lucky to have a tight group of high-quality tradesmen and sub-contractors who work alongside us at a very high level, reducing the risk,” Paul says. With such a long lead-in time from start to finish interior trends and designs can change. “Most clients don’t decide on those details until two years into the build. Even the internal finishes can change.”
SOUTHERN LAKES BUSINESS MONTHLY
September - October 2023 | Issue 32
Sponsored
Driven to make beautiful buildings Bespoke building company Modulo was founded on the belief that great things can come in small packages. Based in Queenstown and Cromwell, it manufactures prebuilt sustainable homes, baches, offices, studios and sleepouts at reasonable prices. But that doesn’t mean it skimps on quality. The idea is to connect mid-range buyers to top-end architectural practices and talented in-house designers, creating custom builds from premium materials for New Zealand’s unique scenery and environment. And that’s all backed by friendly project management which moves like clockwork. “We have a big vision but lots of passion and experience,” Modulo founder Mariano Croce says. “My belief is that being a good person and working hard with your team is all you need to be successful in business.” The Argentinean entrepreneur co-founded a modular building business in his home country at the age of 24, which grew over the following 15 years to employ more than 100 people. On a two-week holiday in 2019, however, he says his family felt that “special energy” of Queenstown and its community, so they decided to take the plunge, leave their comfort zone to start a new life. Croce with his experience and some research into the New Zealand’s building industry quickly gained an entrepreneurship visa, and the family relocated in March 2020, just days before the first Covid lockdown. It was a challenging environment to start a business, especially as rising interest rates have left potential customers with less money to fund non-essential projects, such as holiday baches or guest houses. “But I knew it was a strong concept and there were no modular companies in the area at that moment,” he says.
Modulo Linear Dark, designed by Arrowtown based Hofmans Architects Ltd
“My first strategy was to approach quality architects. New Zealand has great architects but they are very busy and generally work for clients with larger budgets.
customer who lives in a house and wants a guest house on the grounds, but doesn’t want builders on site for months.”
“Smaller one-off projects would work out too expensive, so the idea was to have them provide designs that can be used more than once - rinse and repeat model - and for Modulo to manage the project, allowing the customer to personalise with a choice of finishes, fixtures, to make necessary alterations and tweaks.
Prefabrication also means the company can retain quality control through the process, as well as reducing waste, travel and increasing health and safety.
“I’m not someone who is afraid to pick up the phone, I think it’s very important to network and to be honest and serious with people, specially in a small community. It is a win-win agreement, and in the end our clients get more value for their building while the architects reach more market.” Modulo has a range of designs, generally from 30sqm modules to 150sqm three-bedroom buildings, from the likes of Hofmans Architects Ltd, Fabric, JCY Architects and Strachan Group Architects. It also employs its own in-house designer and project admin who can work directly with the customer or do the liaison with the architect, saving project time and money, as well as creating Modulo’s own designs. “We are driven by aesthetics and creating healthier homes, buildings that sit perfectly in the New Zealand environment.” The company offers three services. The most basic is manufacture, where the customer chooses a design and Modulo builds it at its Cromwell factory and delivers to site. The second is ‘plug-and-play’, where the customer chooses a design, Modulo manufactures, transports and assembles on site, and the third is a ‘turn-key solution’ where it will also deal with civil works and connect utilities. Over the past few years, it’s delivered projects in Arrowtown, Lake Hawea, Wharehuanui, and a highquality yet affordable beach house for Colac Bay.
Modulo founder Mariano Croce and in-house designer Paula Martinez
“The Colac Bay bach is a perfect example of the benefits of prefabrication, because it would be much more difficult to transport builders down there to assemble a house from the ground up, and have them deal with the weather and waiting for electricians or other tradespeople. “There are so many remote locations around here, out towards Glenorchy for example, or perhaps you have a
As well as design and convenience, the use of quality materials make Modulo buildings stand out from the pack. For Wharehuanui, for example, the exterior features dark timber cladding and fascias, these along with high end windows, all made of locally sourced thermally modified timber from Abodo Wood. Interiors are lined with birch elite from Plytech - best available plywood in New Zealand - and engineered timber flooring from Forte. Kitchen joinery and general cabinetry is custom built throughout, the integrated fridge freezer and dark porcelain tops stands out. Bathroom tiles could not be other than NZ natural stone from Timaru along with glazed finger mosaics. Lighting is exquisite, with black David Trubridge pendants above the kitchen island and Hand-blown Soktas in the bathroom wall. Finally, the Pyro Mini ultra low emission burner is more a social feature than a real heating need, being the house is airtight and offers a fully insulated double frame system filed with wool blend insulation from Terra Lana. “We’re all proud of the outcome.” Croce says his role is to identify the right people to work on projects, bring them together, and also to have collaboration along the whole supply chain. “Building is painful. There are many parties involved, many decisions to make. Costs are usually underestimated and every client needs the house before Christmas. “Someone has to carry out the project from 0 to 100, do the follow up, project manage, triple check. Modulo is all that, and that requires humanity and workmanship. Once you achieve this, then you can add value ... and develop whatever the opportunity brings.”
Photo credit: Sampford Cathie
September - October 2023 | Issue 32
LAKES BUSINESS
Paetara Aspiring Central open by Jess Allen
Wānaka’s new Youth and Community Centre, Paetara Aspiring Central, opened at the start of October. Located on Plantation Road, it’s the old Mitre 10 building, which has been transformed since Naylor Love commenced work on 5 April this year. The centre was completed in several stages, the first of which was to remove existing strapping and previous material typical of a hardware store. The next step was the reconstruction phase where framing and trusses were installed and remediation of the floor was carried out. Drew Morse is a project manager at Queenstown Lakes District Council (QLDC), and helped to oversee the project. “There’s been a lot of work carried out,” Morse says. “Essentially, when we took the building over, it was kind of a blank canvas internally. So there’s a lot of framing and internal construction that has been done to create the tenanted spaces. All the flooring has been done and laid as part of the construction piece as well.” The total budget for the project was approximately $4.2 million, which is an increase of $90,000 on the initial budget due to additional fire protection measures. The council estimates the centre will generate close to $375k annually from programmes and venue hire. The centre is a welcome addition for sports and community groups in the area, many of whom have will be needing new facilities in the coming years. It will alleviate stress for Aspiring Gymsports and Kahu Youth, giving them a permanent home – Aspiring Gymsports have been lobbying the council to provide an appropriate venue for its growing club, and Kahu Youth have said that they outgrew their current building a couple of years ago. “Internally, there’s two indoor courts that have space for volleyball, basketball, netball and pickleball. Then there’s two tenanted spaces, one for Aspiring Gym
Sports and one is for Kahu Youth. Aspiring Gym Sports moved in on 3 July and Kahu Youth moved in on 9 October. Then there’s a dance-yoga studio space, which will be run much like spaces at the Queenstown Events Centre, where they’ll be bookable and also used by the Sport and Rec team in Wānaka to run different classes – dancing, yoga, and that sort of stuff. Additonally there’s staff space as well.” Many hands make light work and there were certainly a lot involved to bring the centre to life. Rubix Project Management oversaw the multi-stage design process, which was carried out by Salmond Architecture, engineering by WSP, and quantity surveying by RLB. External weathertightness and handover work was completed by Willowridge as the developer, prior to QLDC carrying out work internally. The space was fairly empty inside and, as well as the tenanted and recreational spaces, has been filled with changing rooms, staff facilities and server rooms. There was also new ducting and lighting installed, to ensure the building met NZBC requirements for the newly proposed use. Additional toilets had to be plumbed in as the existing building didn’t have enough for the proposed use. The finishing touches included polishing, skimming and products and paint applied on the netball court flooring. Once the building work was wrapped up, the project was handed over to QLDC on 20 September. The team worked to prepare the space for the opening – a ceremony was held on 1 October that was attended by QLDC, councillors and the public, before opening on 2 October. The council, those involved in the development and users of the space are thrilled to see the project’s completion. The flexible multi-purpose facility provides space to accommodate several different sports clubs, groups and community organisations, and will also provide opportunities for the development of new programmes.
LAKES BUSINESS Sponsored
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Walters says Queenstown Lakes homeowners tend to favour the natural look, reflecting the stunning scenery around them. “That can be Schist looks, marbling, Terrazzo, that stone finish, it really just depends on personal taste. We have an amazing showroom with some great displays up the front, which showcase a lot of the natural, earthy looks.” The store caters for tradespeople, developers and people who walk in off the street wanting something for their own homes. “We encourage people to come and see us because we have some very knowledgeable staff who go the extra mile for our customers. “It can be very daunting and overwhelming, making those design decisions, if you have no idea what you want. “We always suggest people do that 2am Pinterest browse, so they can have a concept or at least an idea of what they like and what don’t like. But we can coach people through that too. We always do our best.” And it’s not just tiles. The Tile Depot is a one-stop shop, offering a range of DIY products, trade materials, bath ware, tile accessories and adhesives, and other types of flooring, including laminate flooring, engineered stone flooring, along with underfloor heating. “The only thing we don’t sell is carpet!” Walters says. Visit The Tile Depot, 65 Gorge Rd, Queenstown, open from 7.30am-5pm, Monday to Friday, or the website at tiledepot.co.nz
September - October 2023 | Issue 32
LAKES BUSINESS
Headwinds for house construction by Paul Taylor
Building costs are stabilising in Queenstown Lakes after post-pandemic supply chain issues and inflation, but finding and financing land is now the issue. Colliers published its annual Otago Market Review and Outlook last month, covering its key projections for Queenstown, Wānaka, Cromwell and Dunedin. Its experts say demand continues to outstrip supply for Queenstown and construction can’t keep pace. “We’re seeing construction costs have stabilised both from a labour perspective and materials,” Colliers local valuation director Heather Beard says. “But land availability is an issue, particularly for the residential market, and we’ve seen some pretty strong price increases in sections coming to market.” While there are sections available in higher end subdivisions, such as Koko Ridge, Kawarau Park and Peninsula Hill, there’s not much at entry level, with few remaining at Hanley’s Farm. Its Melbourne-based developer RCL recently splashed $70 million on 163 hectares of land at Homestead Bay, State Highway 6, Queenstown, neighbouring Jack’s Point. It will develop between 1700 and 2300 residential sections over the next decade, to be on-sold to families, builders and property investors, for the construction of residential dwellings. That will meet some of the demand from a growing population but is still some years away. “We’ll have to wait and see on that one. At the moment the supply pipeline is not coming on fast enough for the demand.”
“It’s a pretty tough lending environment at the moment and you have higher tests on rates and income. Construction costs have inflated pretty significantly over the past two to three years.
Higher interest rates mean those looking to build are struggling to finance projects, as are some developers.
“If you can get a section in Hanley’s Farm, there is still some margin in it for you, if you build and on-sell.”
SOUTHERN LAKES BUSINESS MONTHLY
September - October 2023 | Issue 32
5 minutes with Bod of Boden Building by Sue Fea
In a time when there are strong calls to repurpose materials and save the planet, it’s good to have a guy like Bod Boden around. A passion to avoid waste and repurpose materials from old buildings is not a new concept for this Brit-turned-Kiwi builder, whose been involved in many iconic local restorations and reconstructions locally since arriving here in 2003. Boden brought with him a wealth of British experience, having grown up around historic building restorations in England, which date back far further than New Zealand’s. “Dad was a design and technology teacher with a passion for re-using old items and I started working alongside him in the late 1970s when I was still incredibly young,” Boden says. “I got a work bench and a heap of offcuts for Christmas when I was four, just to give me the feel of timber, and that’s where it all started.” Despite working on restoration of some beautiful English stately homes, many with his father, Boden didn’t become a qualified carpenter until arriving in Queenstown. “I’ve worked in all forms of construction. I very much enjoy it – the timber, material, or textiles, it doesn’t matter which.” His goal is to help people achieve their passion while ensuring those wonderful old materials from days gone by don’t go to waste. “I’m honestly not fussed if the old building stays or goes,” he says. “People have a strong connection to these old buildings, and I appreciate they have memories, but for me it’s the wastefulness if it’s just bowled and good quality milled timber is just thrown out. “A building doesn’t mind if it’s being pulled down.” It’s the satisfaction of bringing back to life pieces that craftsmen have built 160 years before, that he loves. He’s constantly thinking about them while at work, how they’ve crafted each building, enjoying the high-quality timbers with their beautiful patterns, swirls, and grains. “It makes me melancholy for better times past when all the timber was hand cut, milled then shipped down the lake on the steamers, hand sawn again and nailed into position. “Whenever one of my apprentices is having a bad day and feeling hard done by, I remind them that in the 1860s and 1880s they had to hand saw and rail timber together. We have battery tools and electricity.” NZ pine does a good job but to Boden its soulless. “It doesn’t have that warmth and character.”
Bod on the job
He’s intrigued by the way the older quality materials react to compression and tension, and how they load and interweave to make mankind’s life better or worse. Even if it takes him three years to repurpose that material into somebody’s dream home, or to build a local youth or rehabilitation centre, Boden says that’s what it’s all about for him. A trained outdoor education instructor, Boden now has some 40 years’ experience in restoration construction and repurposing old materials, which has also been a lifetime hobby. Prior to that he worked for 16 years repurposing and reusing old materials in homes and residential buildings, about 10 years for UK builders who specialised in the field. “Carpentry in the UK is limited so it’s more decorative masonry, another thing I enjoy.” It’s slow and heavy work and doesn’t suit the resources available in NZ, he says. He decided to formalise his qualifications when he came here to earn a manageable income. He’s been involved in working on some iconic Wakatipu historic buildings, including Williams Cottage, Wilson Bay homestead, Hulbert House, McBride Farm stables and haybarn at Frankton. “The most important thing is understanding from a construction point of view how awful it is to just pull old buildings down. To me it smacks of consumerism.” Boden’s message is that while it costs more and can be painstakingly slow, good things take time and it’s ok to keep using quality resources.
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LAKES BUSINESS Sponsored
Thinking of renovating? How to avoid budget blow outs
Are you thinking of renovating but are daunted by the prospect? You are not alone in this. In a recent survey, over 400 respondents* said that encountering unforeseen costs and budget overruns was their single biggest fear. Sadly, this fear isn’t unfounded. According to independent industry research^ a typical renovation project results in 30% of costs being wasted. So how can you avoid this? Local renovation specialist Kathleen Magon from Refresh Renovations shares her tips for minimising your risk while renovating.
• Define your objective – what do you want to achieve and why • Make a plan – break the project down into achievable milestones • Create and stick to your budget – try to avoid budget creep • Plan for the unexpected – have a contingency fund around 15-20% of your total budget
• Create a project schedule – be clear on all your major deadlines • Expect the unexpected – even the most meticulous planning can’t foresee everything
• Compromise – Set realistic specifications, avoid splurging on luxuries that add little value
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SOUTHERN LAKES BUSINESS MONTHLY
September - October 2023 | Issue 32
Tewa Banks on track by Paul Taylor
The first homes at Arrowtown affordable housing subdivision Tewa Banks are expected to be completed mid-2024.
Ground Source Heat Pump drilling, pictured at Tewa Banks in August
Building consent has been approved for all 68 homes in the Queenstown Lakes Community Housing Trust development, off Jopp Street.
“Some months it goes up 100 households. It’s just been crazy for the past six months or so.”
Wilson Contracting has completed the earthworks and moved on to retaining walls. SouthRoads is well underway with civil works, including roads, and house construction expected to begin in January.
Housing will be completed in Tewa Banks over 10 stages, likely finished mid-2026.
The first 13 homes, being built by Breen Construction, will include assisted ownership properties, rental properties and one-bedroom senior housing. Trust chief executive Julie Scott says: “We’re thrilled to be at this stage after many years of discussions with Queenstown’s council about developing that piece of land. “The biggest challenge to date has been the cost of construction, because the prices have gone up so much over the past few years. “We not selling them on the open market, so can’t just put the sale price point up at the other end like a normal developer.
The homes, ranging in size from one to four-bedrooms, will be held under a mixed tenure of all QLCHT housing programmes; Public Housing Rental, Senior Housing, Affordable Rental, Rent Saver and Secure Home. Longer term, the Trust hopes to secure the Lynch Block off Thompson Street downtown (next to the Lakeview site) for a high-density affordable housing project, and made submissions to the Queenstown Lakes District Council annual plan. “The council is unsure of what it wants to do with the land, whether it goes to the higher bidder or is retained for affordable housing. There are a number of different views around the council on that, so it’s a difficult to make a decision.”
“We’re constrained to helping households who essentially earn under $130,000, so low to moderate income.”
QLDC has come under fire for letting ramshackle cabins on the Lynch Block sit empty during a rental housing crisis, rather than investing the money to bring the up to Healthy Homes Standards.
The Trust is also building to a higher spec than code requires, ultimately to bring down living costs for the occupiers. That includes ground source heating. Therma/ McMillan’s have completed drilling of the Ground Source Heat Pump bores, which connect to a loop array system.
But, Scott says generally QLDC does not get enough credit for the work it puts in to affordable housing. “It gets a lot of stick online, particularly on social media, about doing nothing for housing and people. I think it’s a really naive comment.
“That’s cost an additional $1.5 million but the outcome for the households will be phenomenal.”
“People just don’t understand how big a role it has played in facilitating capital to come to the Trust, and the level of support through inclusionary housing, and big chunks of land like Tewa Banks, to enable us to do what we do.
Scott says the Trust completed a sustainability review of the project, but decided it was too far along the path for a complete redesign, especially now with 1100 eligible households on its waiting list.
“They really are the backbone behind us, and that’s not always visible to the public unfortunately, or people just choose not to see it.”
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