Work starts soon on Queenstown’s largest residential development by a home-building company.
Classic Builders is building 57 three-bedroom two-bathroom homes at the entry-level Shotover Country subdivision.
Homes, some priced at $425,000 and others from $450,000 to $500,000, will be among Queenstown’s most affordable.
Classic Builders Queenstown, locally owned by Stephen Goddard, bought the block from Shotover Country developers Sharyn and Grant Stalker, who have zoning for about 750 homes.
The block is across the road from a primary school opening next year and beside a small proposed retail complex.
The site was zoned by the council for medium-density housing, allowing houses to be about twice as close together than, say, nearby Quail Rise.
Classic Builders has been involved in a number of medium-density housing developments around New Zealand including Hobsonville Point, containing 3000 sections, in Auckland, and has developed two small projects at Queenstown’s Arthurs Point.
Local Classic Builders consultant Damian Petre says managing the entire process, from the acquisition of raw land, is “the best way for us to get the end product on the market at a price that people are after”.
“We’re building a number of houses across the country at any given time so we have the ability to buy materials affordably.
“When you’ve got a volume model your margins are smaller but if you sell enough you still come out on the right side.”
Petre has no doubt the company’s Shotover Country project will sell well: “There’s been about 200 sections released to the market at Shotover Country and they’ve been snapped up really quickly.”
Classic Builders has already built a few stand-alone homes there and recently opened a showhome in Oxfordshire Drive.
Sections have so far all been priced below $200,000.
“The school has been a huge incentive, the price of the sections has been on the money. It’s been a huge success and the timing couldn’t be better.”
Petre says there’s already good interest in his firm’s project.
Civil works are expected to start next month, along with formal marketing of the homes.
Petre says the houses will be built in stages, with the first completed in about 12 months.
Clients will have a say on materials and designs, he adds.
“With larger-scale developments of this nature, we like to have a little bit more control but people can still come in and put their own touches on it. We’ve got a good group of builders so we can manage this scale of project without too many difficulties.”
Would-be purchasers may be assisted by the Government lifting the Queenstown-Lakes price cap last year for Welcome Home mortgages from $350,000 to $425,000.
Buyers eligible for the loan only need a 10 per cent deposit as against the 20 per cent now needed for most residential purchases.
Co-developer Grant Stalker says he’s delighted Classic Builders is involved.
“Classic has got a very good reputation for building in medium density.”
Stalker believes its homes will appeal to those who don’t want the hassle of building on their section.
Sales progress at Shotover Country has been very pleasing, he says.
“We’ve been caught out by the demand – it’s ahead of expectation.”
So far three homes have been completed and about 30 are under construction.