Hope you’re having a great week so far? Great!
How about we look at some of the interesting things that have been happening in construction around Christchurch, New Zealand, for this past month?
Corbel Failures Highlight Industry Woes
That is why the company’s leaky repair services at Auckland should not be treated as an isolated event. In fact, that goes on to support how the recent construction boom is affecting the available companies.
It is sad that, at this point, Corbel has gone into liquidation. The statement of the company’s liquidator on how the firm went into this financial position by themselves does nothing to change the storyline that they have also failed.
If this means anything, it is that Christchurch (and New Zealand as a whole) have lost yet another one of their big construction firms.
When we say yet another, there is a reason behind that
As early as June of last year, Ebert Construction collapsed under the same pressure that many companies had been feeling. The directors of Manzeal have also been taken to court since, not to mention the losses of Fletcher from their construction arm already closing in to $1 million, if not more.
Looking at this trend, the problem does not lie with the companies anymore.
There is an inherent issue in the sector and industry which needs to be addressed for any good to come out of it If not, the rate at which companies in the construction and building niche will start closing down will be very high compared to how much of them open up shop.
The solution? Better resources, more companies to take up the task and of course, experienced and seasoned personnel to handle any and all operations.
Million-dollar Homes No More
From as far back as the year 2016, developers were commissioned to build apartment towers with the concept of million-dollar homes in mind. Today, that project has been dropped in favor of others.
It is believed that the developers set out to the project with a bid to attract the younger population. However, the older demographics have been populating the area the more.
The homes, which were promised to become the biggest and most luxurious set of apartments in the city, have now been stalled till the real estate market picks up in these areas again.
After the earthquakes that affected Christchurch, the Carlton Mill apartments were commissioned as a way to make up for the loss of the Millbrook apartments.
As of the time when these apartments were made public to the market, they had an initial valuation starting from $1.6m. As of the time of this writing, though, the owners of that site are already looking to liquidate.
If anything, that tells how much trust — or lack thereof — the developers now have in this location. This is even before they have gotten around to finishing up the desired pan for the area — some 14 homes that will be housed on no less than 240 square meters of floorspace.
It seems all the developer is interested in now is cuffing their losses and getting out of a market that doesn’t seem to be taking them anywhere.
Somewhere else in Victoria St, the commissioned $50m Verve apartment rebuild aimed at compensating for the loss of another tower has also been halted. Supposed to house sixty-two (62) apartments, this tower would have gone on to sell homes worth between $400,000 and $1m.
Today, that story has changed.
When one of the proposed developers were reached for comments, all they had to say was that three were focusing on other projects for now. They didn’t make more comments than that, but they have said enough.
Unless the construction industry receives the boom and support it needs, this downward trend might not be going anywhere anytime soon.
How Much Is Too Much?
The citizens of Christchurch might be all for the development of their area, but they don’t seem to like their new neighbors that much. That is why they have raised a complaint (as far back as last year) which prompted the city council into checking out the development plans all over the city.
Quite frankly, this concern is not out of place. Areas which used to be free have now become tightly packed, parking spaces are clogged and leg space is becoming a thing of the past.
Personally, we don’t think the problem lies in the development — which should keep taking place to improve the quality of life of those in the area. It is, rather, a feature of improper planning.
There you have it. The roundup of the construction business for the month in Christchurch, New Zealand. Next month, we will curate even more interesting news and amazing insights into the industry, just for you.
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