What is the secret to successfully developing residential communities in New Zealand? Hear from a developer with major projects totalling more than 2000 homes…
As the pandemic eased, market demand and favourable policies sparked a boom in medium- and high-density development in New Zealand. Many investors entered the market, hoping to deliver high-quality, well-priced projects that would fill gaps in supply while generating attractive returns.
As the pandemic eased, market demand and favourable policies sparked a boom in medium- and high-density development in New Zealand. Many investors entered the market, hoping to deliver high-quality, well-priced projects that would fill gaps in supply while generating attractive returns. However, a lack of experience has left many uncertain about their direction during the early stages. We therefore invited Lin Hongren, Development Director at Changda International NZ Limited, to share insights drawn from his extensive development and construction experience. Mr Lin has worked in property development and construction for more than a decade, successfully delivering both residential and commercial projects. He has extensive local practical experience in planning and design, construction costing and project management.
Changda International NZ Limited was established in 2013. Its parent company, Weifang Changda Construction Group, has been active in the property industry since 1949. A large, integrated construction group, it combines planning and design, project investment, property development, construction, supporting works, operational management and financial services. Its honours include recognition among China's top hundred construction enterprises for competitiveness and as an outstanding Chinese property developer. Backed by its parent company's strength, Changda International NZ also operates across several fields, including property development and construction. In 2019, it ranked among the top four in Pacifecon Building Intelligence's list of New Zealand's top 200 residential builders. Its principal current projects include the development and construction of two large communities, Pacific Gardens and Pacific Heights.
Strong sales at Pacific Gardens reflect its market appeal
Asked how to develop residential projects successfully in New Zealand, Mr Lin said: “First, a development must have sufficient funding and cash flow. This supports smooth progress and provides greater flexibility during planning. Changda International NZ has a clear advantage in this area. Both projects we are developing are also relatively large. Their scale gives us greater control over their overall positioning and development programme, and makes it easier to attract local attention and support.”
Auckland Mayor Phil Goff takes part in the ribbon-cutting ceremony marking the start of Pacific Gardens construction in 2016
“Early in the company's development, we considered focusing solely on either construction contracting or property development. Our research, however, found that this would make it difficult to control the overall development programme and construction costs. We subsequently adopted an integrated model combining investment, construction and marketing. This allows us to manage the pace of development, costs, quality, construction schedules and marketing strategies more effectively,” Mr Lin said.
Pacific Gardens master plan
“When building our team, we have also focused on bringing together professionals with substantial local property development experience. This has helped us avoid the adjustment difficulties an overseas team can face when entering a new market, while providing clear advantages in planning and design, tendering and supplier selection.
“In construction research, our parent company has consistently pursued innovation and stayed at the forefront. Technologies developed by Changda's construction technology operation, such as BIM modular construction and lightweight cement, have won repeated awards in China. Changda International NZ will draw on these strengths and introduce advanced technologies into our future development and construction projects when appropriate,” Mr Lin added.
An apartment project built by Changda International NZ using James Hardie exterior cladding
“Choosing suppliers whose brands are well recognised locally is an important part of our property development work. For exterior cladding, for example, James Hardie is a longstanding supplier. As mentioned, our projects are large, so we select material suppliers very carefully. After repeated research and discussions, we found that James Hardie could meet our diverse product requirements and provide considerable professional support. We therefore established a long-term partnership.”
Townhouses built by Changda International NZ using James Hardie exterior cladding
“James Hardie's products are highly trusted both within the industry and in the market. They perform exceptionally well in fire resistance, sound insulation, and resistance to decay and moisture, making them particularly suitable for medium- and high-density developments. Their presentations are also highly professional and detailed, closely meeting council compliance requirements and gaining government recognition. This greatly assists the official review of our designs, progress in planning and design, and on-site construction. Their products are also relatively straightforward to install, improving our construction teams' efficiency.”
“James Hardie also offers a wide range of exterior cladding products, allowing us to purchase several materials from a single partner. This reduces communication costs and gives us some purchasing discounts. They also provide prompt, professional technical support. If a problem arises during construction, their technical staff visit the site promptly and recommend an appropriate solution.”
“On supply, even when logistics were under severe pressure during the pandemic, James Hardie's after-sales team coordinated effectively, gave advance notice and worked proactively to ensure deliveries arrived on time wherever possible.”
Adequate funding, an experienced team, up-to-date technology and reliable partners are all essential to a successful residential community project. Mr Lin concluded: “Changda International's ambition in New Zealand goes beyond simply developing projects. We want to create high-quality, branded residential communities.” Pacific Gardens, currently being marketed by Changda International NZ, is planned to include more than 1600 homes, while Pacific Heights is planned to comprise 575. Pacific Gardens has already become a landmark residential community in South Auckland.
If you are interested in Changda International NZ's business or in investing in or purchasing a property at Pacific Gardens or Pacific Heights, visit its official website, changda.co.nz. To find out whether James Hardie exterior cladding is suitable for your development or construction project, call James Hardie customer service or scan the QR code below to follow its official WeChat account.
