1 00:00:00,120 --> 00:00:03,320 Speaker 1: Now New Zealand's biggest residential builder has announced plans to 2 00:00:03,320 --> 00:00:06,040 Speaker 1: get even bigger. GJ. Gardner Homes wants to grow from 3 00:00:06,080 --> 00:00:09,560 Speaker 1: thirty one franchises to forty in the next year. It's 4 00:00:09,600 --> 00:00:12,000 Speaker 1: interesting timing considering that the housing market isn't in the 5 00:00:12,000 --> 00:00:14,520 Speaker 1: greatest shape at the moment. Grant Portius is the joint 6 00:00:14,560 --> 00:00:17,840 Speaker 1: managing director of Deacon Homes, which is GJ. Gardner's master franchiser. 7 00:00:17,880 --> 00:00:21,159 Speaker 2: Hey Grunt, Hello Heather, how are you very well? Thank you? 8 00:00:21,320 --> 00:00:23,439 Speaker 1: As I just said it interesting timing. So is this 9 00:00:23,520 --> 00:00:27,040 Speaker 1: a case of you guys taking advantage of a downturn? 10 00:00:27,480 --> 00:00:30,479 Speaker 2: I think there's a lot of things involved. So people 11 00:00:30,520 --> 00:00:32,240 Speaker 2: will lose. One of the fact that in the downturn 12 00:00:32,280 --> 00:00:34,880 Speaker 2: they're still demand for housing, it's just a lesserate amount. 13 00:00:34,920 --> 00:00:36,639 Speaker 2: So you need to be more competitive to make sure 14 00:00:36,640 --> 00:00:38,279 Speaker 2: you get your share and look after your businesses. 15 00:00:38,640 --> 00:00:40,919 Speaker 1: How do you even have the ability to do it 16 00:00:40,960 --> 00:00:43,120 Speaker 1: given that, I mean, you guys must have taken a knock. 17 00:00:43,200 --> 00:00:46,559 Speaker 2: Given what's going on we have, we'd be about a 18 00:00:46,600 --> 00:00:50,320 Speaker 2: third down I think is and reported. However, the way 19 00:00:50,360 --> 00:00:52,839 Speaker 2: we do this is we just keep looking for opportunity 20 00:00:52,920 --> 00:00:56,240 Speaker 2: and we measure the calls. We're getting to our franchisees 21 00:00:56,400 --> 00:00:58,680 Speaker 2: as surrounding franchise ees from new areas or to a 22 00:00:58,760 --> 00:01:01,800 Speaker 2: head office, go and do some analysis in an area. 23 00:01:01,840 --> 00:01:04,400 Speaker 2: You look at the competition in the area and you're 24 00:01:04,440 --> 00:01:07,000 Speaker 2: back yourself that you can with the right people move 25 00:01:07,120 --> 00:01:09,520 Speaker 2: in and create a new business in that area. And 26 00:01:09,520 --> 00:01:12,600 Speaker 2: we've got new misproven success models and achieving that. 27 00:01:13,000 --> 00:01:15,760 Speaker 1: And so is it a case of because others are 28 00:01:15,840 --> 00:01:18,960 Speaker 1: hurting at retrenching and maybe even going under, that leaves 29 00:01:18,959 --> 00:01:22,120 Speaker 1: market share for you guys to take advantage of it. 30 00:01:22,240 --> 00:01:24,840 Speaker 2: Certainly does. We are New Zealand's biggest builder. We have 31 00:01:24,880 --> 00:01:28,759 Speaker 2: a very competitive proposition and it's not always about wanting 32 00:01:28,800 --> 00:01:32,160 Speaker 2: to hurt others. It's about a market neeting good competitive 33 00:01:32,160 --> 00:01:35,000 Speaker 2: housing as we know across New Zealand, and we're a 34 00:01:35,000 --> 00:01:37,840 Speaker 2: business that can do that. So it's matching ourselves in 35 00:01:37,880 --> 00:01:40,560 Speaker 2: the systems we provide with a very good local couple 36 00:01:40,920 --> 00:01:43,240 Speaker 2: who often need a hand up to move from being 37 00:01:43,319 --> 00:01:45,800 Speaker 2: very good builders of a few homes to having the 38 00:01:45,840 --> 00:01:48,840 Speaker 2: capability to build forty or fifty homes for their region 39 00:01:48,880 --> 00:01:49,800 Speaker 2: and their area. 40 00:01:49,920 --> 00:01:52,080 Speaker 1: Greg, I see that you say that they're a strong 41 00:01:52,120 --> 00:01:56,080 Speaker 1: demand for growth in regions, especially outside of Auckland. Are 42 00:01:56,120 --> 00:01:58,440 Speaker 1: you seeing a different story emerging here between what's happening 43 00:01:58,440 --> 00:01:59,960 Speaker 1: in Auckland what's happening outside of Auckland. 44 00:02:00,960 --> 00:02:05,920 Speaker 2: Yes, certainly the Auckland market remains challenging. Land remains challenging. 45 00:02:05,960 --> 00:02:08,280 Speaker 2: A new land coming on streams may be some time. 46 00:02:08,720 --> 00:02:10,480 Speaker 2: And I think as we all know, there has been 47 00:02:11,400 --> 00:02:13,760 Speaker 2: a lot of people moving from Auckland and taking the 48 00:02:13,800 --> 00:02:17,040 Speaker 2: advantage of going to regions where land's cheaper, so you're 49 00:02:17,080 --> 00:02:19,600 Speaker 2: in housing product comes through the better price and just 50 00:02:19,600 --> 00:02:21,440 Speaker 2: for that quality of life away from some of the 51 00:02:21,480 --> 00:02:23,320 Speaker 2: challenges we face living in Auckland. 52 00:02:23,880 --> 00:02:25,480 Speaker 1: Are you still seeing you know, that thing that happened 53 00:02:25,520 --> 00:02:27,760 Speaker 1: during lockdown where everybody wanted to move to the Coramandal 54 00:02:27,800 --> 00:02:29,720 Speaker 1: because you know you could have a beautiful life, good 55 00:02:29,720 --> 00:02:31,720 Speaker 1: life balance and still be able to work remotely. Is 56 00:02:31,760 --> 00:02:32,520 Speaker 1: that still happening. 57 00:02:33,919 --> 00:02:35,880 Speaker 2: I don't think it's quite so much that people are 58 00:02:35,880 --> 00:02:38,720 Speaker 2: looking to move to those resort cliant places. Be it 59 00:02:38,760 --> 00:02:41,320 Speaker 2: we have the franchise and the Coramant it performs very well, 60 00:02:41,720 --> 00:02:44,160 Speaker 2: but more you christ, you just become a market with 61 00:02:44,280 --> 00:02:46,600 Speaker 2: the rebuild. It's a modern city. There's a lot of 62 00:02:46,639 --> 00:02:49,280 Speaker 2: opportunity then a lot of growth, and I do think 63 00:02:49,320 --> 00:02:52,160 Speaker 2: these Zalanders are starting to really see out in the 64 00:02:52,240 --> 00:02:55,120 Speaker 2: rural regions. It's not just about affordability, and it's not 65 00:02:55,320 --> 00:02:58,799 Speaker 2: and the work opportunities that do exist. It's all about lifestyle, 66 00:02:59,360 --> 00:03:02,160 Speaker 2: getting back to nature, getting out of mountain bikes and 67 00:03:02,240 --> 00:03:04,120 Speaker 2: enjoying all those sorts of things. And I think people 68 00:03:04,160 --> 00:03:07,200 Speaker 2: from covid is the only in the fact that they 69 00:03:07,280 --> 00:03:11,040 Speaker 2: want to work to live, not live to work. Yeah. 70 00:03:12,200 --> 00:03:14,400 Speaker 1: Look, I look at what's happening in the housing market 71 00:03:14,440 --> 00:03:16,959 Speaker 1: and measures that have been taken by the likes of 72 00:03:17,000 --> 00:03:18,560 Speaker 1: the Reserve Bank and the government and stuff like that, 73 00:03:18,600 --> 00:03:20,960 Speaker 1: the detis and all that kind of stuff. I do 74 00:03:21,080 --> 00:03:23,680 Speaker 1: not see the market ever picking up and running as 75 00:03:23,800 --> 00:03:25,760 Speaker 1: full noise hot as it has in the past. 76 00:03:25,800 --> 00:03:29,280 Speaker 2: What do you think I'd support you with that? I 77 00:03:29,280 --> 00:03:31,520 Speaker 2: think anything have to realize that when we had demand 78 00:03:32,120 --> 00:03:35,320 Speaker 2: of fifty thousand permits, we were never building to that level. 79 00:03:35,680 --> 00:03:37,920 Speaker 2: At best, we had a capability in New Zealand of 80 00:03:37,960 --> 00:03:42,720 Speaker 2: around thirty five thousand permits. And I never look and say, well, 81 00:03:42,720 --> 00:03:44,920 Speaker 2: the best decade was this, So that's going to push 82 00:03:44,960 --> 00:03:48,320 Speaker 2: repeat once we come out of this lower time. You 83 00:03:48,360 --> 00:03:50,360 Speaker 2: look and assess for what's in front of us and 84 00:03:50,400 --> 00:03:52,600 Speaker 2: what can we do and what games can we play 85 00:03:52,640 --> 00:03:54,600 Speaker 2: to participate in that. So part of that for us 86 00:03:54,640 --> 00:03:57,720 Speaker 2: is about them growing our skill set, growing our resources, 87 00:03:57,840 --> 00:04:01,200 Speaker 2: moving into density building, moving with the new typologies that 88 00:04:01,240 --> 00:04:04,200 Speaker 2: are coming available, and looking where we can help in 89 00:04:04,200 --> 00:04:07,440 Speaker 2: that area to build homes with great amenity but medium 90 00:04:07,480 --> 00:04:09,800 Speaker 2: density and homes that people can enjoy it. 91 00:04:10,120 --> 00:04:12,320 Speaker 1: How long do you think before the market does start 92 00:04:12,360 --> 00:04:12,880 Speaker 1: picking up. 93 00:04:13,880 --> 00:04:16,599 Speaker 2: We have seen a list right now and I'm not 94 00:04:16,640 --> 00:04:19,279 Speaker 2: saying that just to be positive. And the new Plymouth 95 00:04:19,320 --> 00:04:21,120 Speaker 2: as I speak to you, I've just come from a 96 00:04:21,120 --> 00:04:23,600 Speaker 2: new show home where they're actually thinking about asking people 97 00:04:23,640 --> 00:04:27,160 Speaker 2: make appointments because there are salespeople went out to get 98 00:04:27,160 --> 00:04:29,400 Speaker 2: a break during the day. They're having over thirty couples 99 00:04:29,520 --> 00:04:32,360 Speaker 2: visit a day on weekends and still going to demand 100 00:04:32,440 --> 00:04:36,080 Speaker 2: during the week. I left wrong an yesterday and mostly 101 00:04:36,520 --> 00:04:38,800 Speaker 2: wrong and he's looking beautiful and I've done a wonderful 102 00:04:38,880 --> 00:04:41,720 Speaker 2: job there. The council heads up to them and as 103 00:04:41,760 --> 00:04:43,520 Speaker 2: I left, I've got a call from one of our 104 00:04:43,520 --> 00:04:46,560 Speaker 2: team and they just conceleted a twenty two house contract 105 00:04:46,640 --> 00:04:50,919 Speaker 2: signature to build some new homes through there. So things 106 00:04:50,920 --> 00:04:55,040 Speaker 2: are certainly happening. I don't ever count, hope by or 107 00:04:55,160 --> 00:04:57,280 Speaker 2: worry too much about what governments are there, to look 108 00:04:57,279 --> 00:04:59,160 Speaker 2: at what's in front of us. And so we're seeing 109 00:04:59,160 --> 00:05:02,200 Speaker 2: an increased members through our show homes in the rural areas, 110 00:05:02,680 --> 00:05:06,320 Speaker 2: increased numbers of clients paying to us a deposit to 111 00:05:06,360 --> 00:05:09,880 Speaker 2: get concepts drawn, and we've certainly seen that uplist in 112 00:05:09,880 --> 00:05:12,240 Speaker 2: the last two months. It's been quite incredible. 113 00:05:12,360 --> 00:05:14,680 Speaker 1: Yeah, brilliant stuff. Hey, Grant, thank you, really appreciate talking 114 00:05:14,680 --> 00:05:15,840 Speaker 1: to you, and best of luck with your plans. It's 115 00:05:15,839 --> 00:05:17,960 Speaker 1: Grant Porteus, JJ Gardner Holmes. 116 00:05:18,880 --> 00:05:22,040 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 117 00:05:22,160 --> 00:05:25,200 Speaker 2: news talks. It'd be from four pm weekdays, or follow 118 00:05:25,240 --> 00:05:27,000 Speaker 2: the podcast on iHeartRadio.