Construction costs making it 'impossible' to build affordable homes - developer

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One News

Property developers are sounding a warning that the Government's plan to enable more affordable housing to be built is being undermined by skyrocketing construction costs.

Cost of building homes skyrocketing - developers
02:02
Property developers are warning that rising construction costs will undermine the Government’s affordable housing plan.
Source: ONE News

They say the cost of building a house is up almost 50% in just two years and combined with rising land prices they say this makes building an affordable house almost impossible.

"Last year these houses were $1420 a square metre, unfortunately our builder has gone into receivership so we're contracting to get the same house built over here at about $1800 a metre, so that's a 27% increase in a year on construction costs," says Property Developer Kerry Knight.

However, Mr Knight's figures don't quite square with official figures which show excluding the land, new house prices were up about 5% nationwide and 7% in Auckland last year.

But Mr Knight is not alone with another developer telling ONE News he's been given quotes that are up 50% on two years ago.

Mr Knight says he's not making an extra cent and the increase is due to a shortage of builders and subcontractors.

"What do you think this does to the drive to make more affordable housing?

"Well in Auckland it makes it impossible, unless you want houses without kitchens and bathrooms."

Housing Minister Nick Smith insists he's keeping a close eye on building costs.

"The underlying part though is that it's the cost of land rather than the building materials that's having the biggest and most negative impact on housing affordability," he says.

The Master Builders Federation is rubbishing talk of such big price hikes.

"There's still plenty of competition in the market, our members are happy with the upturn but their margins are no greater than they were," says NZ Master Builders Federation CEO David Kelly.

"There may be a little bit of catch up but there's certainly no profiteering that we know of."

Experts are saying the labour shortage will exist for several years yet meaning the price tag on houses could continue to rise.

Aid workers mobilise as Fiji cleans up, tallies Cyclone Winston damage

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One News

As damage is assessed and the clean up continues in Fiji, aid agencies are swinging into action to help the thousands of residents affected by the devastating category five cyclone that tore through the Pacific island chain at the weekend.

Cyclone Winston hit Fiji's outer islands on Saturday. It moved along the northern coast of Viti Levu overnight, leaving five people dead, cutting power and communications, shredding crops and collapsing hundreds of homes as people were sheltering from winds of more than 300 kilometres an hour. 

Cyclone Winston: Category five monster terrified families, left trail of destruction in its wake
04:50
Emergency crews are coming to terms with the aftermath of the tropical cyclone as it heads south of Fiji.
Emergency crews are coming to terms with the aftermath of the tropical cyclone as it heads south of Fiji.
Source: ONE News

The government responded quickly by clearing vital roads, and the main airport reopened yesterday for emergency flights with at least some commercial services due to resume this morning.

Boys play rugby during category 5 cyclone
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Cyclone Winston hasn’t stopped a group of boys in Fiji from playing rugby.
Cyclone Winston hasn’t stopped a group of boys in Fiji from playing rugby.
Source: Facebook/NaDraki Weather

Red Cross says it has enough emergency relief stock pre-positioned across Fiji to support 12,500 people.

A New Zealander with Red Cross in Suva, Melanie Ogle, says over 300 Fiji Red Cross staff and volunteers have so far been mobilised to support at-risk communities and people in evacuation centres. 

Volunteers are trained in emergency response and pre-positioned relief aid is on hand, she says.

Ms Ogle, a disaster management specialist, says Fiji Red Cross teams are undertaking initial assessments to get a clearer picture of the damage. 

Fijians begin huge task of cleaning up Cyclone Winston's mess
00:51
Fijians begin huge task of cleaning up Cyclone Winston’s mess
Fijians begin huge task of cleaning up Cyclone Winston’s mess

Based on the Red Cross' experience of responding to cyclones in the Pacific, the priority humanitarian needs are likely to be emergency shelter, access to clean water and family kits including hygiene items, she says.

The main challenge for the organisation will be reaching affected communities due to anticipated flash flooding, damage to infrastructure and communications and the remoteness of some island communities, Ms Ogle says.

Fiji's National Disaster Management Office says officials are trying to establish communications and road access to the hardest-hit areas and won't know the full extent of the damage and injuries until then.

A New Zealand Defence Force Orion flew from Whenuapai yesterday to help Fiji authorities carry out aerial surveillance and damage assessments.

A school building flattened by Cyclone Winston in Ba, Fiji Islands.

Source: Supplied by Anish Chand

The New Zealand Government made an initial $50,000 available for urgent requests from the Fiji Government and has authorised up to $170,000 worth of pre-positioned relief supplies held by non-government agencies such as Rotary and UNICEF in Fiji.

Foreign Minister Murray McCully said it's clear further support will be needed and the Government will be working with the local authorities over coming days to determine how it can best assist Fiji.

New Zealanders can help efforts on the ground by donating to the Red Cross Pacific Disaster Fund

New Zealand Red Cross says it does not accept clothing, food or other goods as they can clog up airports and ports, distract humanitarian workers from more important tasks, and often cost more to transport than the goods are worth.

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