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Comparing a Dinghy and Dark Rental Property to a Sunny Home

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In a bold new campaign aimed at first-home buyers, Auckland’s largest property development company, Du Val Group demonstrates its commitment to driving positive change for people who want to get onto the property ladder.

Du Val Chief Marketing Officer Gabrielle Byfield said, “Du Val Group holds a unique and influential position in the property industry. We believe it’s our responsibility to inform and inspire first-home buyers who dream of owning a brand-new home or want to invest in property to know that achieving their goal is not as hard as they think.

“We know it’s a bold step to compare owning and living in an affordable, high-quality Du Val property in South or West Auckland with living in a small, dingy, dark rental property in an area like Mt Eden, Newmarket, or Ponsonby with a bunch of flatmates, but if we are serious about getting first-home buyers into the property market, then we need to be doing things differently.

"Du Val is passionate about home ownership and wealth creation. With the Government removing the price cap for First Home Loans and increasing the cap from $700,000 to $875,000 for those applying for grants, now is the perfect time to talk positively and encourage home ownership,” said Ms Byfield.

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Du Val Group Sales Director Nerissa Gibson adds, “There’s a lot of talk in the property and construction market about housing affordability which can easily disincentivise people from believing that they can ever afford their own home.

“We know many people believe it’s too tough and unachievable to own their own home and that it’s easier to keep renting. Our responsibility is to show them how they can overcome the challenges, and this campaign, which is deliberately bold and direct, informs those Kiwis who are currently paying high rents that their dream is achievable.

“What many people don’t realise is that Du Val’s property sites, while not in central Auckland, are located in some of Auckland’s highest growth areas and are close to key transport amenities.

“There are many compelling benefits of buying a home off the plan. Good capital gains can be made when the property value increases between paying the first deposit and when the project is completed. It also gives many buyers extra time to organise their finances before settlement,” said Ms Gibson.

Ms Byfield adds, “This marketing campaign is different for a property company, but we’re not unafraid to challenge the status quo.

“Within 24 hours of launching the campaign across key Auckland billboard sites and via our social media channels, we generated over 100 genuine leads.  It was phenomenal; the video we put on YouTube was our best-performing one ever, and we had over 50,000 impressions on Facebook alone.

“After just a few weeks in the market, the number of leads has reached nearly 4,000,” said Ms Byfield.

Why has KiwiBuild Not Been a Success

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One of the challenges faced by the KiwiBuild program was the lack of interest from developers in delivering the types of housing that the program was aiming to deliver. The program was designed to deliver affordable homes for first-home buyers, but it faced several challenges that made it difficult to achieve this goal.

One of the main challenges was the cost of construction. The KiwiBuild program aimed to deliver affordable homes, but the cost of construction in New Zealand is relatively high, due in part to the cost of materials and labor. This meant that developers were often unable to deliver affordable homes at the price points required by the KiwiBuild program.

Another challenge was the lack of interest from developers in delivering the types of housing that the program was aiming to deliver. The program focused on delivering standalone homes and apartments in urban areas, but many developers were more interested in delivering higher-value, higher-density developments that were more profitable.

Finally, the KiwiBuild program faced challenges around the availability of land and infrastructure. Many of the areas where the program was seeking to deliver housing were already under pressure from a lack of infrastructure and a shortage of available land. This made it difficult to deliver new housing developments in these areas. Developers know this as they work with different town plans and councils on a day-to-day basis where we know these options are not viable.

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While the KiwiBuild program had the potential to deliver much-needed affordable housing, it faced several challenges that made it difficult to achieve this goal. Addressing these challenges will require a multi-faceted approach that considers the cost of construction, the types of housing that are commercially viable, and the availability of land and infrastructure.

There are potential benefits of working with private developers who have a strong track record in delivering successful housing developments. In many cases, these developers have a deep understanding of the commercial and logistical aspects of developing housing projects, which can help to ensure that projects are delivered on time, within budget, and to a high standard of quality.

Working with private developers can also help to address some of the challenges faced by the KiwiBuild program. For example, private developers may have access to lower-cost financing or be able to leverage economies of scale to reduce the cost of construction. They may also be able to deliver a wider range of housing typologies that are more commercially viable, such as townhouses or terraced houses.

In addition, working with private developers can help to address the issue of capacity constraints within the public sector. By partnering with private developers, the government can leverage their expertise and resources to deliver housing projects more efficiently and effectively.

While there are certainly challenges associated with working with private developers, there are also potential benefits to be gained from doing so. By carefully selecting and partnering with proven developers who have a track record of success, the government can help to accelerate the delivery of affordable housing and address some of the challenges facing the New Zealand housing market.

Government Aid for Private Developers in Housing Provision

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The construction and development industry are a vital part of the New Zealand economy, providing jobs and infrastructure essential to the growth and development of the country. However, as we discussed in a previous blog post, the industry has been hit hard by the challenges posed by the COVID-19 pandemic. While the government has implemented various measures to support the sector, there are still some significant gaps that need to be addressed, particularly when it comes to funding for developers and construction companies building standard residential housing for everyday Kiwis.

One of the most pressing issues facing the New Zealand housing market is the shortage of affordable homes. The rising cost of housing has made it increasingly difficult for many Kiwis to enter the property market, particularly first-time buyers, and those on low to moderate incomes. While the government has implemented various measures to address this issue, including the KiwiBuild programme and the First Home Loan Scheme, there is still a significant shortfall in the number of affordable homes being built.

One of the reasons for this shortfall is the lack of funding available to developers and construction companies building standard residential housing. While there are various grants and funding programmes available to support the construction industry, many of these are aimed at larger-scale infrastructure projects, rather than everyday housing for Kiwis. This means that many developers and construction companies are struggling to secure the funding they need to build the affordable homes that New Zealanders desperately need.

There are several ways in which the government could address this issue. One option would be to create new funding programmes specifically aimed at supporting developers and construction companies building standard residential housing. These programmes could provide grants or low-interest loans to help cover the costs of construction, making it easier for developers to build affordable homes without compromising on quality or safety.

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Another option would be to provide tax incentives or other forms of financial support to encourage developers and construction companies to build affordable homes. This could include reducing or waiving development fees, offering discounts on building materials, or providing support for apprenticeships and training programmes to help boost the skills of the construction workforce.

It is clear that more needs to be done to address the shortage of affordable housing in New Zealand. While the government has implemented various measures to support the construction industry, there are still significant gaps that need to be addressed, particularly when it comes to funding for developers and construction

companies building standard residential housing. By creating new funding programmes and providing other forms of financial support, the government can help to address this issue and ensure that all Kiwis have access to safe, secure, and affordable homes.

Property Industry Boosts New Zealand's Economy

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New Zealand's economy has been steadily growing over the years, and the property development industry has played a significant role in this growth. Property developers are responsible for creating new buildings and infrastructure, which not only boosts economic activity but also creates jobs and supports the growth of other industries.

According to a report published by the Property Council of New Zealand, the property development industry contributed approximately $29.8 billion to the New Zealand economy in 2020. This figure includes the value of new construction, renovations, and infrastructure development.

One of the key benefits of property development is the creation of jobs. The industry directly employs over 74,000 people, and indirectly supports many more jobs in related industries such as architecture, engineering, and construction.

Furthermore, property development has a significant impact on local economies. When a new building is constructed or renovated, it creates a demand for goods and services such as building materials, furniture, and appliances. This, in turn, supports businesses in these industries and helps to create additional jobs.

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In addition to creating jobs and supporting other industries, property development also has a positive impact on the property market. New developments increase the supply of available housing, which can help to reduce housing prices and increase affordability. This, in turn, can help to stimulate economic growth by freeing up funds that would have been spent on housing costs, allowing individuals to spend or invest elsewhere in the economy.

Overall, the property development industry is a significant contributor to the New Zealand economy, both in terms of job creation and economic growth. With the ongoing demand for new infrastructure and housing, it is likely that the industry will continue to play an important role in supporting the country's economic development.

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Du Val Group Welcomes Lifting of House Price Caps

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“The Government’s announcement today that all house price caps will be completely removed from the First Home Loan application process and increased for First Home Grants (from $700,000 to $875,000 in Auckland) is excellent news for first home buyers in New Zealand,” said Nerissa Gibson, Du Val Group Sales director.

“This shift in policy settings will allow a significant number of kiwis to make the dream of owning their own home a reality and get the added sense of security, stability and freedom that comes with owning property and living in a community they can call home for many years to come. The demand for modern, warm, and affordable housing is huge, yet the challenge for many has been that house price caps for home loans and grants have been completely out of sync with the increase in housing prices.

This announcement will not only provide more certainty for first home buyers but the Government’s commitment to reviewing the house price caps every 6 months will provide a high level of confidence to residential property developers to continue exploring new opportunities, which will benefit the entire housing market. Du Val’s goal is to deliver 1,000 homes across the Auckland region each year. Because of our large scale we’ve been able to implement new methodologies and solutions to mitigate the current supply chain challenges and construction price increases to deliver on our mission to provide more affordable housing for New Zealanders,” said Mrs Gibson.

Redefining the Playing Field

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High-quality, affordable housing is a complex problem to solve and there’s definitely no shortage of controversy around those attempting to solve it.

Affordable housing doesn’t just represent an aspiration, it represents an opportunity for anyone who wants to enter the property market – Kiwis who want a home they deserve to call their own or use as an investment to build their wealth.

So how do we continue to deliver quality affordable housing against a backdrop that predicts all new builds will continue to become increasingly expensive therefore shutting out making these new houses will be completely out of reach for home buyers, first-time or not?

Large-scale residential property development is incredibly complex, and there are a huge number of hidden risks – both site-based and general, which are factors such as policy changes, restrictions on borrowing, natural disasters etc. For us to deliver on our goal, we recognised the need to reduce the level of risk in our control. This meant redefining the playing field and taking control of as many parts of the property process as possible.

So, here’s an interesting question – what would happen to the level of risk and our ability to deliver quality, affordable housing if we incorporated all elements of the property process?

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This concept is at the core of our 360-degree approach. By bringing land purchasing, construction, sales, marketing, and property management all under one umbrella, we're reducing our reliance on third-parties and can take more control in the outcomes of our projects. Ultimately, it means we can deliver on our promise to our clients – the Kiwis who buy our homes.

When it comes to our clients [the people buying our properties], our approach means they engage with us, the Du Val team, from start to finish.  Our team work with aspiring home owners from the moment they become interested in owning a home, right through to after they’ve moved in or rented it out.

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In terms of construction, our 360-degree approach comes from deciding as a business that we wanted to understand, and control, the component pieces of our industry. By internalizing construction, we’ve been able to have greater insights into what truly makes housing expensive and causes delays. And we’ve been able to innovate and put in place processes to mitigate that.

Our focus is ensuring all our developments are future-proof. This is where the 360 degree approach is beneficial – at the end of the day, because the processes are ours, we’re not reliant on third parties to service defects or provide building and facilities management. That responsibility sits with us.

 

Du Val urges Auckland renters to consider home ownership

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Comparing a small, dingy, and dark rental property to a bright, sunny home.

Du Val launches a bold new campaign to target first-home buyers who dream of owning a brand-new home or want to invest in property

In a bold new campaign aimed at first-home buyers, Auckland’s largest property development company, Du Val Group demonstrates its commitment to driving positive change for people who want to get onto the property ladder.

Du Val Chief Marketing Officer Gabrielle Byfield said, “Du Val Group holds a unique and influential position in the property industry. We believe it’s our responsibility to inform and inspire first-home buyers who dream of owning a brand-new home or want to invest in property to know that achieving their goal is not as hard as they think.

“We know it’s a bold step to compare owning and living in an affordable, high-quality Du Val property in South or West Auckland with living in a small, dingy, dark rental property in an area like Mt Eden, Newmarket, or Ponsonby with a bunch of flatmates, but if we are serious about getting first-home buyers into the property market, then we need to be doing things differently.

“Du Val is passionate about home ownership and wealth creation. With the Government removing the price cap for First Home Loans and increasing the cap from $700,000 to $875,000 for those applying for grants, now is the perfect time to talk positively and encourage home ownership,” said Ms Byfield.

Du Val Group Sales Director Nerissa Gibson adds, “There’s a lot of talk in the property and construction market about housing affordability which can easily disincentivise people from believing that they can ever afford their own home.

“We know many people believe it’s too tough and unachievable to own their own home and that it’s easier to keep renting. Our responsibility is to show them how they can overcome the challenges, and this campaign, which is deliberately bold and direct, informs those Kiwis who are currently paying high rents that their dream is achievable.

“What many people don’t realise is that Du Val’s property sites, while not in central Auckland, are located in some of Auckland’s highest growth areas and are close to key transport amenities.

“There are many compelling benefits of buying a home off-the plan. Good capital gains can be made when the property value increases between paying the first deposit and when the project is completed. It also gives many buyers extra time to organise their finances before settlement,” said Ms Gibson.

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Ms Byfield adds, “This marketing campaign is different for a property company, but we’re not unafraid to challenge the status quo.

“Within 24 hours of launching the campaign across key Auckland billboard sites and via our social media channels, we generated over 100 genuine leads. It was phenomenal; the video we put on YouTube was our best-performing one ever, and we had over 50,000 impressions on Facebook alone.

“After just a few weeks in the market, the number of leads has reached nearly 4,000,” said Ms Byfield.