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Protecting Future Generations
If you're looking at buying or building a new home, it's important to understand some key trends and dynamics that have occurred within the NZ housing market.
On the demand side, the fundamental trend affecting the market has been the dominance of price as the main purchasing criteria. On the supply side, this trend has had a significant impact on the quality of our homes. Due to the price-driven market, builders strive to compete on price alone, and in order to win contracts they are forced to cut costs. Unfortunately, cutting costs means using cheaper building products and materials, and/or cheaper building labour and subcontractors.
The speed at which the project is completed is also a major factor here, because a home built quickly means lower labour costs for the builder, which translates to a lower overall contract price, and this gives the builder a better chance of winning the project. Unfortunately, the faster the job is completed, the less time there is to ensure things get done correctly and to a high quality standard.
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