Over recent years the rising cost of a new home has put the ‘Great Australian Dream’ of home ownership well beyond the reach of an increasingly larger proportion of the population. In the past decade the price of the average house has risen from 5 to 7.5 times the average annual wage. According to recent reports, housing affordability in Australia is one of the lowest in the developed world and we now live in the largest homes in the world. The Australian Bureau of Statistics, has found that the proportion of new homes with 4 or more bedrooms, has increased from 17% to 29% over the 20 years to 2006. As house sizes increase, so does price.
Traditional methods of home construction in Australia have inherent problems: lengthy construction time; inconsistent quality; exposure of materials to the elements; shortage of skilled labour; unpredictable weather; and so on. All these have implications for cost, time and quality.
The other important issue facing not only Australia but the world generally, is sustainability. Australians currently emit more than 550 million tones of greenhouse gases each year. The average household emits around 14 tonnes annually. A significant proportion of this is generated through everyday domestic activities such as heating, cooling, lighting, cooking and running appliances.
Electricity accounts for 53% of the energy used in Australian households, but creates around 87% of the greenhouse gas emissions because most of our electricity is generated by burning fossil fuels. This needs to change if we are to have a sustainable future.
At Kerdic we believe that housing for the future must be approached differently. We need to be smarter about our home designs, sizes and the materials used with a focus on affordability and sustainability. Kerdic is passionate about finding solutions to these fundamental issues that Australians face, both today and in the future.
Affordability
Kerdic Homes is putting steps in place to bring housing back within the reach of the average Australian, without sacrificing quality. Kerdic’s management also own a manufacturing facility in Foshan, China, that produces housing products for the international market. The manufacturer, Nova Deko www.novadeko.com.au, exports around 95% of the product to Europe and USA. About 5% comes to Australia and retailed via major building supply outlets.
On behalf of Kerdic Homes, Nova Deko has created a new home manufacturing division called DekoBuiild, which now produces a substantial portion of our steel-framed prefabricated designer homes. Plans are in place to also manufacture modular prefab container homes (see below) from early 2011. Kerdic believes the introduction of both types of prefab homes represent a major step in the drive towards greater home affordability.
Building a home in a controlled environment has many benefits such as:
Provides higher quality control and greater accuracy resulting in a stronger, better built home.
The home can be produced in a factory in a significantly shorter timeframe. Also, site works and house production can occur simultaneously.
Material wastage is minimised as is the use of energy (e.g. electricity and fuel) in the production process, thereby lowering greenhouse gas emissions.
Building materials are not exposed to the weather during construction and is protected from mould and warping.
Predictable costs and lower risks.
Another important consideration in addressing the affordability issue, is design. Using smart design principles, use of space is optimised. Space waste is eliminated and with strategic use of glass and interface with outdoor areas, areas can be made feel larger than they really are. Room sizes are based on needs not wants. So with smart design, homes can be somewhat smaller than current homes, with consequential savings in both production costs and running costs (e.g. heating and cooling).
Because of our strong affiliation with the manufacturer, we can now offer homes virtually at factory direct prices. Savings achieved in the production process are passed onto our clients.
In summary, this all means lower costs to the end user and a big step in our drive towards greater affordability.
In addition to these measures Kerdic is currently undertaking research and development regarding modular container homes.
Using containers as the basic frame for homes is not new and is very popular in many European countries. Containers offer a huge structural strength for a fraction of the cost of conventional means. Kerdic’s aim is to make container-based homes comfortable, trendy and aesthetically pleasing as well as very affordable. Modular container homes have advantages such as:
Low cost relative to traditional home construction methods.
Provides flexibility in design catering for different family circumstances and allows additional modules to be added at a later date as these circumstances change.
Engineered to provide structural integrity even when some of the external walls are removed.
This strength also means foundations are simpler and less expensive.
Easily transported to site without special wide-load permits.
Sustainability
Kerdic Homes is very conscious of climate change issues and is determined to do whatever it can to introduce as many sustainable elements as is economically viable in our new range of affordable homes.
Solar energy will be part of the solution. Solar energy, a renewable source, is clean, has minimal impact on the carbon footprint and is abundantly available in Australia.
One of the problems with solar energy in the past has been the initial cost, taking many years to recoup. With recent improvements in the efficiency of photovoltaic technology, plus increases in competition, supply and in the cost of reticulated electricity, together with attractive feed-in tariffs and various government incentives, solar energy is now economically viable for households.
The most cost effective time to incorporate sustainable elements in a new home is in the construction stages. Kerdic’s aim for its prefabricated homes is to incorporate environmentally sustainable elements such as:
Solar panels to minimise energy costs and possibly generate income through sale of excess capacity via the power grid.
Steel frames and roof trusses, providing strength, stability, termite resistance and capacity to handle sloping sites and varying soil conditions without exorbitant costs. The use of timber is minimised which has many environmental and ecological benefits.
Double glazed sliding windows and doors, with real benefits in terms of solar heat load and ambient noise reduction.
Fully integrated insulation within the walls and ceilings, to cut external heat load in summer and contain internal heat in winter.
Open home designs to permit cross ventilation to keep homes cool.
For a brief explanation of solar power, click here.
