September 12, 2024 • 5 mins
G.J. Gardner, New Zealand’s largest franchised group house-building business and biggest residential builder, is planning to expand further.
The business is aiming for a 30 percent growth in franchise numbers in the next year, according to new reports.
G.J. Gardner's Grant Porteous says there'll always be demand for housing - even during economic downturns.
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Episode Transcript
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Speaker 1 (00:00):
Now New Zealand's biggest residential builder has announced plans to
get even bigger. GJ. Gardner Homes wants to grow from
thirty one franchises to forty in the next year. It's
interesting timing considering that the housing market isn't in the
greatest shape at the moment. Grant Portius is the joint
managing director of Deacon Homes, which is GJ. Gardner's master franchiser.
Speaker 2 (00:17):
Hey Grunt, Hello Heather, how are you very well? Thank you?
Speaker 1 (00:21):
As I just said it interesting timing. So is this
a case of you guys taking advantage of a downturn?
Speaker 2 (00:27):
I think there's a lot of things involved. So people
will lose. One of the fact that in the downturn
they're still demand for housing, it's just a lesserate amount.
So you need to be more competitive to make sure
you get your share and look after your businesses.
Speaker 1 (00:38):
How do you even have the ability to do it
given that, I mean, you guys must have taken a knock.
Speaker 2 (00:43):
Given what's going on we have, we'd be about a
third down I think is and reported. However, the way
we do this is we just keep looking for opportunity
and we measure the calls. We're getting to our franchisees
as surrounding franchise ees from new areas or to a
head office, go and do some analysis in an area.
You look at the competition in the area and you're
(01:04):
back yourself that you can with the right people move
in and create a new business in that area. And
we've got new misproven success models and achieving that.
Speaker 1 (01:13):
And so is it a case of because others are
hurting at retrenching and maybe even going under, that leaves
market share for you guys to take advantage of it.
Speaker 2 (01:22):
Certainly does. We are New Zealand's biggest builder. We have
a very competitive proposition and it's not always about wanting
to hurt others. It's about a market neeting good competitive
housing as we know across New Zealand, and we're a
business that can do that. So it's matching ourselves in
the systems we provide with a very good local couple
who often need a hand up to move from being
(01:43):
very good builders of a few homes to having the
capability to build forty or fifty homes for their region
and their area.
Speaker 1 (01:49):
Greg, I see that you say that they're a strong
demand for growth in regions, especially outside of Auckland. Are
you seeing a different story emerging here between what's happening
in Auckland what's happening outside of Auckland.
Speaker 2 (02:00):
Yes, certainly the Auckland market remains challenging. Land remains challenging.
A new land coming on streams may be some time.
And I think as we all know, there has been
a lot of people moving from Auckland and taking the
advantage of going to regions where land's cheaper, so you're
in housing product comes through the better price and just
for that quality of life away from some of the
(02:21):
challenges we face living in Auckland.
Speaker 1 (02:23):
Are you still seeing you know, that thing that happened
during lockdown where everybody wanted to move to the Coramandal
because you know you could have a beautiful life, good
life balance and still be able to work remotely. Is
that still happening.
Speaker 2 (02:33):
I don't think it's quite so much that people are
looking to move to those resort cliant places. Be it
we have the franchise and the Coramant it performs very well,
but more you christ, you just become a market with
the rebuild. It's a modern city. There's a lot of
opportunity then a lot of growth, and I do think
these Zalanders are starting to really see out in the
rural regions. It's not just about affordability, and it's not
(02:55):
and the work opportunities that do exist. It's all about lifestyle,
getting back to nature, getting out of mountain bikes and
enjoying all those sorts of things. And I think people
from covid is the only in the fact that they
want to work to live, not live to work. Yeah.
Speaker 1 (03:12):
Look, I look at what's happening in the housing market
and measures that have been taken by the likes of
the Reserve Bank and the government and stuff like that,
the detis and all that kind of stuff. I do
not see the market ever picking up and running as
full noise hot as it has in the past.
Speaker 2 (03:25):
What do you think I'd support you with that? I
think anything have to realize that when we had demand
of fifty thousand permits, we were never building to that level.
At best, we had a capability in New Zealand of
around thirty five thousand permits. And I never look and say, well,
the best decade was this, So that's going to push
repeat once we come out of this lower time. You
(03:48):
look and assess for what's in front of us and
what can we do and what games can we play
to participate in that. So part of that for us
is about them growing our skill set, growing our resources,
moving into density building, moving with the new typologies that
are coming available, and looking where we can help in
that area to build homes with great amenity but medium
density and homes that people can enjoy it.
Speaker 1 (04:10):
How long do you think before the market does start
picking up.
Speaker 2 (04:13):
We have seen a list right now and I'm not
saying that just to be positive. And the new Plymouth
as I speak to you, I've just come from a
new show home where they're actually thinking about asking people
make appointments because there are salespeople went out to get
a break during the day. They're having over thirty couples
visit a day on weekends and still going to demand
during the week. I left wrong an yesterday and mostly
(04:36):
wrong and he's looking beautiful and I've done a wonderful
job there. The council heads up to them and as
I left, I've got a call from one of our
team and they just conceleted a twenty two house contract
signature to build some new homes through there. So things
are certainly happening. I don't ever count, hope by or
worry too much about what governments are there, to look
(04:57):
at what's in front of us. And so we're seeing
an increased members through our show homes in the rural areas,
increased numbers of clients paying to us a deposit to
get concepts drawn, and we've certainly seen that uplist in
the last two months. It's been quite incredible.
Speaker 1 (05:12):
Yeah, brilliant stuff. Hey, Grant, thank you, really appreciate talking
to you, and best of luck with your plans. It's
Grant Porteus, JJ Gardner Holmes.
Speaker 2 (05:18):
For more from Hither Duplessy Allen Drive, listen live to
news talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
Now New Zealand's biggest residential builder has announced plans to
get even bigger. GJ. Gardner Homes wants to grow from
thirty one franchises to forty in the next year. It's
interesting timing considering that the housing market isn't in the
greatest shape at the moment. Grant Portius is the joint
managing director of Deacon Homes, which is GJ. Gardner's master franchiser.
Speaker 2 (00:17):
Hey Grunt, Hello Heather, how are you very well? Thank you?
Speaker 1 (00:21):
As I just said it interesting timing. So is this
a case of you guys taking advantage of a downturn?
Speaker 2 (00:27):
I think there's a lot of things involved. So people
will lose. One of the fact that in the downturn
they're still demand for housing, it's just a lesserate amount.
So you need to be more competitive to make sure
you get your share and look after your businesses.
Speaker 1 (00:38):
How do you even have the ability to do it
given that, I mean, you guys must have taken a knock.
Speaker 2 (00:43):
Given what's going on we have, we'd be about a
third down I think is and reported. However, the way
we do this is we just keep looking for opportunity
and we measure the calls. We're getting to our franchisees
as surrounding franchise ees from new areas or to a
head office, go and do some analysis in an area.
You look at the competition in the area and you're
(01:04):
back yourself that you can with the right people move
in and create a new business in that area. And
we've got new misproven success models and achieving that.
Speaker 1 (01:13):
And so is it a case of because others are
hurting at retrenching and maybe even going under, that leaves
market share for you guys to take advantage of it.
Speaker 2 (01:22):
Certainly does. We are New Zealand's biggest builder. We have
a very competitive proposition and it's not always about wanting
to hurt others. It's about a market neeting good competitive
housing as we know across New Zealand, and we're a
business that can do that. So it's matching ourselves in
the systems we provide with a very good local couple
who often need a hand up to move from being
(01:43):
very good builders of a few homes to having the
capability to build forty or fifty homes for their region
and their area.
Speaker 1 (01:49):
Greg, I see that you say that they're a strong
demand for growth in regions, especially outside of Auckland. Are
you seeing a different story emerging here between what's happening
in Auckland what's happening outside of Auckland.
Speaker 2 (02:00):
Yes, certainly the Auckland market remains challenging. Land remains challenging.
A new land coming on streams may be some time.
And I think as we all know, there has been
a lot of people moving from Auckland and taking the
advantage of going to regions where land's cheaper, so you're
in housing product comes through the better price and just
for that quality of life away from some of the
(02:21):
challenges we face living in Auckland.
Speaker 1 (02:23):
Are you still seeing you know, that thing that happened
during lockdown where everybody wanted to move to the Coramandal
because you know you could have a beautiful life, good
life balance and still be able to work remotely. Is
that still happening.
Speaker 2 (02:33):
I don't think it's quite so much that people are
looking to move to those resort cliant places. Be it
we have the franchise and the Coramant it performs very well,
but more you christ, you just become a market with
the rebuild. It's a modern city. There's a lot of
opportunity then a lot of growth, and I do think
these Zalanders are starting to really see out in the
rural regions. It's not just about affordability, and it's not
(02:55):
and the work opportunities that do exist. It's all about lifestyle,
getting back to nature, getting out of mountain bikes and
enjoying all those sorts of things. And I think people
from covid is the only in the fact that they
want to work to live, not live to work. Yeah.
Speaker 1 (03:12):
Look, I look at what's happening in the housing market
and measures that have been taken by the likes of
the Reserve Bank and the government and stuff like that,
the detis and all that kind of stuff. I do
not see the market ever picking up and running as
full noise hot as it has in the past.
Speaker 2 (03:25):
What do you think I'd support you with that? I
think anything have to realize that when we had demand
of fifty thousand permits, we were never building to that level.
At best, we had a capability in New Zealand of
around thirty five thousand permits. And I never look and say, well,
the best decade was this, So that's going to push
repeat once we come out of this lower time. You
(03:48):
look and assess for what's in front of us and
what can we do and what games can we play
to participate in that. So part of that for us
is about them growing our skill set, growing our resources,
moving into density building, moving with the new typologies that
are coming available, and looking where we can help in
that area to build homes with great amenity but medium
density and homes that people can enjoy it.
Speaker 1 (04:10):
How long do you think before the market does start
picking up.
Speaker 2 (04:13):
We have seen a list right now and I'm not
saying that just to be positive. And the new Plymouth
as I speak to you, I've just come from a
new show home where they're actually thinking about asking people
make appointments because there are salespeople went out to get
a break during the day. They're having over thirty couples
visit a day on weekends and still going to demand
during the week. I left wrong an yesterday and mostly
(04:36):
wrong and he's looking beautiful and I've done a wonderful
job there. The council heads up to them and as
I left, I've got a call from one of our
team and they just conceleted a twenty two house contract
signature to build some new homes through there. So things
are certainly happening. I don't ever count, hope by or
worry too much about what governments are there, to look
(04:57):
at what's in front of us. And so we're seeing
an increased members through our show homes in the rural areas,
increased numbers of clients paying to us a deposit to
get concepts drawn, and we've certainly seen that uplist in
the last two months. It's been quite incredible.
Speaker 1 (05:12):
Yeah, brilliant stuff. Hey, Grant, thank you, really appreciate talking
to you, and best of luck with your plans. It's
Grant Porteus, JJ Gardner Holmes.
Speaker 2 (05:18):
For more from Hither Duplessy Allen Drive, listen live to
news talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
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