In the latest episode of Unpacking the Build, Homeshelf CEO George Glover sits down with Tony Petruzalek, an industry veteran and General Manager of Marketing at JG King Homes. Their discussion explores what to consider when building a new home, providing valuable insights into JG King’s operations, market dynamics, and the evolving needs of home buyers in today's market.
An Overview of JG King Homes
Established in 1985, JG King Homes has cemented its position as a top 10 builder in Victoria. Specialising in detached new home builds, JG King boasts the largest build area among its competitors, with 11 offices spread across the state. A significant point of differentiation for JG King is its commitment to steel frame homes, incorporating Truecore steel frames and Colorbond steel roofs. This focus on durable, high-quality materials underscores JG King’s reputation for innovation and reliability in home construction.
Understanding Buyer Priorities in a Challenging Market
Petruzalek provides a candid assessment of the current market, acknowledging the challenges faced by both buyers and builders. He notes that value has always been a key consideration for customers, but the definition of value varies widely among individuals. The current market conditions, marked by smaller land sizes and higher prices, require buyers to navigate complex decisions about their home purchases.
"Forever customers have always looked for value. And what they define as value is up to each individual," Petruzalek explains. He highlights that modern buyers often face a gap between their expectations and reality, especially regarding land size and building regulations. With the median land size now around 410 square metres, buyers must adjust their expectations and consider the impact of regulations that limit the building footprint to 60% of the land area.
Glover and Petruzalek discuss the compromises that buyers often must make, particularly in terms of space and features, emphasising that understanding these trade-offs is crucial for first-time buyers. Petruzalek advises that considering future needs, such as opting for a four-bedroom home over a three-bedroom one, can often be a cost-effective decision in the long run.
Site Selection and Preparation: Key Considerations
When it comes to site costs and selection, Petruzalek offers practical advice. One of the significant upcoming changes is the mandatory Seven Star energy rating for new homes, effective from May 1st. Achieving this rating involves strategic site orientation to maximise natural light in living areas, with the optimal block orientation being north-facing backyards.
"Orientation is really important," Petruzalek notes. "You want to maximise the amount of natural light you get into your living and dining rooms." He also discusses the importance of understanding the building envelope, which dictates where the house can be constructed on the block.
He notes that JG King Homes has been proactive in delivering Seven Star homes since December 23rd, ahead of the regulatory changes, and offers flexibility in siting homes to suit any block orientation.
Understanding Site Costs
In talking about site costs, Petruzalek empathises that many buyers are initially unaware of how site costs may affect the overall cost of building a home. These costs vary depending on factors like block size, slope, and orientation.
New Homes vs. Established Properties
The conversation also touches on the benefits of building a new home versus buying an established property. Petruzalek highlights the advantage of customisation, allowing buyers to get a home tailored to their specific needs and preferences. This flexibility is often a compelling reason for choosing to build new rather than purchasing an existing home.
Unpacking the Build with JG King
Tony Petruzalek's insights provide a valuable perspective on the current state of the home building industry in Victoria. His expertise underscores the importance of understanding market dynamics, making informed decisions about site selection and preparation, and being aware of the compromises involved in the home building process.
As buyers navigate these challenges, the guidance from experienced professionals like Petruzalek can make a significant difference in achieving a successful and satisfying home building experience.
Watch the full interview here.
Publisher Website: www.homeshelf.com.au