Houses under construction at Hobsonville Point. Photo / Getty Images
G.J. Gardner Homes remains New Zealand’s busiest house-building business, although its annual output has fallen 49 per cent since 2021, according to a comparison of figures released by specialists BCI.
BCI’s national study of house-building businesses is sold to its clients and is not available to the public. However, New Zealand country manager Ben Hurrell supplied the Herald with the latest results.
The Herald compared data from when the house-sale market peaked around October 2021 to the March 2024 year to show the contrast. BCI does not do that, instead issuing monthly updates via rolling annualised data in its What’s On Report.
The busiest residential builder, G.J. Gardner, built 824 homes in the March year, almost half its 1643 output in the October 2021 year. The master franchisor is Deacon Holdings. Its joint managing director, Grant Porteous, said he and wife Ellie were not disappointed with completions because performance remained strong “in such a declining and challenging market”.
The business was different to the top five or 10 on the BCI report, Porteous said.
“Every permit shown on the BCI report represents a sale and signed contract with a client who has specifically chosen us to build their home. It’s not in our DNA to chase volume. Accordingly, we do not speculate in the market.
“We won’t build low-quality homes with little living quality when asked and, by building to contract, we do not need external investor funds or bank funding to buy tracts of land and build spec homes.
“We do not live on the vagaries of the unpredictable building market nor have investors chasing us for their returns, hence we continue to dominate the New Zealand industry by over three times the next builder in revenue, purely by customer choice, for well over 25 years now.”
StatsNZ data shows national building consent applications continue to fall but Prime Minister Christopher Luxon announced stimulatory moves in April. Consents were issued for 36,276 new homes in the February year, down 25 per cent annually. Wellington numbers fell 40 per cent annually, Waikato 28 per cent, Auckland 27 per cent and Canterbury 21 per cent.
Latest BCI data shows Fletcher Residential is the second-busiest builder, increasing output from 548 new homes in the October 2021 year to 573 in the March 2024 year, focused particularly on Auckland, developing the former Winston quarry in Three Kings and many other sites.
Signature Homes is the fourth busiest. Executive director Gavin Hunt said: “The numbers aren’t quite right, because we do a lot of business-to-business sales these days and they don’t show up in the figures under our name.
“For the year to March, we unconditionally sold 451 units, so still a good year for us in the context of the market, which is definitely tough. But we’re only down 16 per cent in volume and 14 per cent in dollars,” he said, comparing the March 2023 year to the March 2024 year.
“We’re very bullish about our progress for the next 12 to 24 months. We have a number of initiatives underway which we believe will continue to push us forward.”
Many businesses aspire to be New Zealand’s biggest house-builders.
Williams Corporation co-owner Matthew Horncastle told the Herald in 2022: “We definitely want to push forward towards that No. 1 position.”
Yet the company has gone in the opposite direction lately, according to BCI’s figures.
The Christchurch-headquartered business was the second busiest behind G.J. Gardner in the October 2021 year. Its completions have since fallen by 79 per cent. Williams built 761 homes in the October 2021 year but was in 11th place by the end of March this year, with 157 homes completed annually, BCI data showed.
Horncastle did not respond to questions from the Herald about the drop.
Auckland-headquartered Du Val, which hopes to be eventually building 1000 homes a year, rose to 32nd place in the March year, building 58, up from 53rd place in the October 2021 year. Chief executive Charlotte Clarke said in 2023 that the business was then evaluating options for growth, setting the 1000 homes target.
Ockham Residential was ranked 19th in the October 2021 year when it had built 149 homes or apartments, valued at $34m. The business, headed by Mark Todd, does not appear on the latest BCI survey.
Hurrell said this was because Ockham had not submitted any consent data in the past year for apartment projects. However, Todd told the Herald last week that the business had completed 481 units in that period.
The real standout from the survey is Takanini-headquartered tiny homes transportable builder HouseMe, which went from completing 117 homes in the October 2021 year, when it was ranked 21st, to 285 homes in the year to March this year, ranking it fifth.
Sales chief Bryce Glover, a 9 per cent shareholder in HouseMe, said: “And that’s probably underestimating it because one building consent can apply to a number of units on a site.
“We’ve probably built close to 350 units in the calendar year,” he said, referring to the 12 months to December 2023.
Demand was particularly strong from older people, who were renting later in life but still had access to land, often via family, and could afford a HouseMe place starting at only $49,500 for a 14.5-square-metre unit. HouseMe appeared on the Deloitte Fast 50 for the second consecutive year.
“We soared to 23rd position among New Zealand’s top 50 fastest-growing companies last year with 238 per cent growth. In 2022, we were ranked 43rd with 172 per cent growth,” Glover said.
1. G.J. Gardner Homes: 824 residences valued at $437m completed in March 2024 year, down from 1643 in October 2021 year
The national franchised business, run by Grant and Ellie Porteous of Deacon Homes, continues to eclipse other companies’ workloads.
Grant Porteous has previously told the Herald: “We are fortunate to be New Zealand’s largest builder and hence largest customer through the various channels of the supply chain, with very strong relationships spanning decades and with our internal systems so we can provide such advanced accurate ordering to both the merchant and manufacturers.”
The number of new homes being built by the franchisees fell 49 per cent from the October 2021 year to the March 2024 year.
Its homes are an average size of 168sqm and have an average value of $530,000.
2. Fletcher Residential: 573 residences valued at $207m completed in March year, up from 548 in October 2021 year
One of the few on the list to show rising volumes, with home numbers up 4.5 per cent in the past two years.
The residential building division is headed by long-serving, experienced Steve Evans, who joined the company in 2013. He is chief executive residential and development. Like ex-Fletcher chief executive Ross Taylor, Evans once worked at Lendlease.
Fletcher homes are an average 126sqm and have an average value of $361,800, below GJ’s due to apartment numbers.
3. Mike Greer Homes: 452 residences valued at $157m in March year, down from 640 in October 2021 year
The Christchurch-headquartered business has a national span, building homes of an average 130sqm for an average $347,900.
In 2016, 18 per cent of the business was sold to Christchurch businessman Ben Gough.
John Callaghan, national sales and marketing manager, said “No thanks” when asked for comment about market conditions and the performance of the business.
4. Signature Homes: 310 residences valued at $164m in March year, down from 611 in October 2021 year.
Executive director Gavin Hunt said the business unconditionally sold 451 units in the March 2024 year, “so still a good year for us in the context of the market, which is definitely tough”. Numbers appeared lower because not all homes built by the business were under the Signature brand, he explained.
The business, which sponsors TV1′s Coronation Street, is one of the longest-established in the sector, having been founded in 1983 under the ownership of Fletcher Challenge. Some staff and builders have been involved since its inception. Owners Gavin and Anneta Hunt were involved with the launch of the business four decades ago.
5. HouseMe: 285 residences valued at $32m completed in March year, up from 117 homes in October 2021 year
The rising star of the sector, building small modular homes at its Takanini factory, then trucking them out nationally. Prices start at $49,500 for a sleepout to $169,000 for a 50sqm two-bedroom transportable home. Featured two years in a row on the Deloitte Fast 50 for outstanding annual revenue growth.
BCI says its average house size is a tiny 35sqm and the average price is just $114,000.
6. Golden Homes: 262 residences valued at $94m in March year, down from 468 in the October 2021 year
The national business builds and sells house and land packages. It has seven North Island and three South Island branches, according to its website.
Its average house value is $361,000, and average size is 147sqm.
7. Classic Builders: 256 residences valued at $119m in March year, down from 636 in October 2021 year
Matt Lagerberg and Peter Cooney founded the business in 1996, believing Kiwis deserved the opportunity to own their own home. They saw a growing need for quality, value-for-money homes built by honest, agile, daring and creative people. Classic Builders was founded in the Bay of Plenty but operations are now national.
Average value $467,000, average size 158sqm.
8. Jennian Homes: 230 residences valued at $120m in March year, down from 537 in October 2021 year
Started in the Waikato by Jenny and Ian Pattan, Jennian Homes now has locally owned franchises nationally. “We are proud to continue our success as New Zealand’s most awarded building company in the Registered Master Builders House of the Year awards year on year,” the business says.
Average home value is high at $525,000 with average sizes also high at 157sqm, showing this business is not so much in the smaller or apartment market.
9. Wolfbrook Residential: 219 homes valued at $56m in March year.
This company was ranked 9th busiest on BCI’s survey to September 2022 so it has held that place. In the year to March 2024, its average home value was $257,000 and average size 109sqm.
Directors Steve Brooks and James Cooney say they “live and breathe property”. After meeting back in 2013, they started collaborating around opportunities and combined their assets to create one of New Zealand’s largest privately owned residential portfolios.
10. Wayne Bishop Group: 159 homes valued at $44m in March year
Founder Wayne Bishop started in the Horowhenua area just after the 1987 sharemarket crash. He has built a 36-unit retirement village project as well as many other homes and says about 150 staff work for the business.
Average size 130sqm, average value $277,000.
11. Williams Corporation: 157 residences valued at $42m in March year, down from 761 in October 2021 year
High-profile Christchurch-HQ business headed by Matthew Horncastle and Blair Chappell, average residential value $273,000, average size small at 75sqm. Slipped from the second-busiest residential builder on the BCI list in the October 2021 year to 11th now.
Horncastle has previously said he does not want to talk to the Herald. No response was received from him or Chappell.
12. Oakridge Homes: 153 residences valued at $45m in March year
Advertises two large standalone show homes in the fast-growing Rolleston, Christchurch. Has many house and land packages in that city and Kaiapoi.
Average size 148sqm, average value $296,000.
13. Venture Developments: 143 residences valued at $38m in March year
Says it specialises in architecturally designed homes and has built award-winning homes for 10 years.
Average size 110sqm, average value $272,000.
14. Latitude Homes: 134 residences valued at $66m in March year
Advertises “the Latitude attitude”, saying the name and navigation icon were chosen to reflect core values.
“Our principal belief is that everybody should be able to afford their own home,” it says.
Average home size is large at 168sqm, average value also high at $499,000.
15. Today Homes: 109 residences valued at $46m in March year
“Graeme and Anne Sanders began Today Homes 35 years ago in the conservatory of their home, starting with a simple ad in the local newspaper,” the business says. “Through hard work and dedication, they managed to create a home-building company the Canterbury community could trust.”
Average homes are large at 174sq m, average value also high at $429,000.
16. Generation Homes [16th equal]: 104 residences valued at $59m in March year
Offers a 14-step building process and says 25 per cent of its customers are those who have returned. Average home size 167sqm, average value $569,000.
17. Pragma Designer Homes: [16th equal]: 104 residences valued at $25.5m in March year
The Hamilton-headquartered business has a show home at Horsham Downs. Average size 103sqm, average value $245,000.
18. Barrett Homes: 102 residences valued at $47m in March year
The builder was founded in Pāpāmoa but says it has expanded from there and does not have the “burden” of franchise fees. Average size 129sqm, average value $465,000.
19. Latham Construction: 94 residences valued at $10m in March year
Projects include Metlifecare Beachlands from the business established in 1985, working in the residential, commercial, civil and specialist building sectors.
Average value $106,000, average home size 86sqm.
20. Trident Homes: 88 homes valued at $44m in March year
Advertises mainly in the South Island but has some North Island branches.
Average home size 170sqm, average value $510,000.
Anne Gibson has been the Herald’s property editor for 24 years, has written books and covered property extensively here and overseas.
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