An Alternative Solution To Housing Affordability & Shortage
1. An Alternative Solution to
Housing Affordability & Shortage
presented by PowerHouse Homes
Waco Tao
Modular Construction Conference
Perth, 27 July 2011
2. Vision Statement
• Within the next five years, grow Powerhouse
Homes into a $1 billion annual revenue
prefab home manufacturing company, that
specialises in producing highly innovative and
environmentally sustainable quality modular
houses for wholesale to governments,
builders and developers,mining industry and
retail sale to anyone who needs a home.
3. Mission Statement
• To be one of the market leaders globally
delivering the most outstanding, innovative,
personalised affordable homes to anyone
anywhere, with minimum environmental
impact.
5. Introduction
• Severe shortage of housing in Australia
• Continued population explosion
• Continued urban sprawl in various parts of Australia
• Rising cost for construction
• Deteriorating affordability for the first home buyers
• Consistent and increasing demand from the mining sector
• Emergency & relief homes
6. Introduction
• Severe shortage housing in Australia
• In general, 60,000 dwellings short currently and 160,000 by 2011 (BIS Shrapnel, March 09’)
• Australia needs 1 million new homes from 2009 to 2014
• Low-income rental housing short by 251,000 (National Housing Supply Council, March 09’)
• HIA projects Melbourne’s population will hit 5 million faster than originally forecast and
that an additional 600,000 dwellings will be needed over the next 20 years
• When the National Housing Supply Council last released a report, in 2010, it said
Australia was 178,400 dwellings short. That's a tad below where BIS Shrapnel puts
the shortage.
• The supply council predicted the country would gain 3.2 million more households by 2029,
and would need to build 160,000 dwellings every year to keep up with demand. But in
2008-09 we managed to put up about only 127,000.
7. Introduction
• Continued population explosion thanks to immigration
predicted to climb to more than 200,000 people
arriving annually in a few years' time
YEAR POPULATION GROWN ON GROWTH
PREVIOUS YEAR RATE %
1950 8,178,700 270,600 3.4
1960 10,275,000 218,600 2.2
1970 12,507,349 244,335 2.0
1980 14,695,356 179,627 1.2
1990 17,065,128 250,.712 1.5
2000 19,153,380 227,525 1.2
2008 21,431,781 359,329 1.7
8. Introduction
• Continued urban sprawl in various parts of
Australia (example)
• Unprecedented population growth (92,734 annually
or 1.78% by June 2008), making Victoria the fastest
growing state in Australia
• Victoria population expected to grow further by
more than 40% by 2036 - with Melbourne alone
adding 1.8 million people in 2030 Melbourne 2030
policy creates opportunities for 466,000 new
homes in new and established areas
9. Introduction
• Rising cost for construction
• In many instances raw material costs have doubled and
even tripled, from steel to lumber, from concrete to
plastic.
• Further contributing to the unaffordability factor
• Builders are reducing their gross margins to retain
market share and employees
10. Introduction
• Deteriorating affordability for the first home
buyers
• Affordable housing remains out of reach for many first home buyers as
interest rates continue to buoy mortgage repayments (survey by The
Housing Industry Association-Commonwealth Bank of Australia, August
08’ )
• E.g. First home buyer affordability index rose just 0.4 per cent in the
June quarter to 105.3 index points
• Mortgage repayments accounted for 28.5 per cent of total first home buyer
disposable income, the second highest proportion on record
• Affordability deteriorated in Sydney, Melbourne, Adelaide, Hobart, Regional
Queensland and Regional South Australia over the past decade
11. Introduction
• Consistent and increasing demand from the
mining sector (example)
• "The Pilbara has evolved into the economic powerhouse of Australia and
is on the threshold of another period of expansion.
By 2035, the region is estimated to have a resident population of
more than 140 000, based on a more diverse economy that has
capitalised on its competitive advantages. As part of the Pilbara
Cities vision, the Pilbara will have two cities: Karratha and Port
Hedland, each with a population of 50 000. These would be
supported by the Newman sub-regional centre with a population of
15,000 and the major towns of Tom Price, Onslow and Wickham.
To cater for the region’s population targets and to satisfy unmet
latent demand, an additional 35 430 dwellings will be needed."
Quote from the February 2011 Pilbara Planning and Infrastructure Framework (Draft)
13. What is a PowerHouse?
• Australian designed and engineered
• BCA complied
• Modular building design
• Design flexibility to achieve individuality
• Steel structured with maximum operational efficiency and comfort
• Prefabricated, limiting on-site assembly and increasing affordability
• Environmentally sustainable
• High energy star rated
• Quick to build
32. PowerHouse Systems
• 1. Marketing System
– Flexibility with choice
– User involvement / Nationwide distribution network
• 2. Design / Technology System
– Ability to individualize
– Architecturally designed
– Ability to customize to suit budget and preference
•
• 3. Customization System
– Off-site customization to reduce cost and shorten delivery time
• 4. Supply Chain Management System
– Ability to deploy existing logistics infrastructure
– Adoption of JIT to ensure guaranteed delivery
– Order visibility through online “Track & Trace” program
33. PowerHouse System
• 5. Installation System
– Turnkey solution
– Interlocking system
– Safe work practices
– TQM
– Industrial relations
– Standardization
• 6. After Sale System
– Correct certification to occupancy
– Certified and knowledgeable trades
– Buy-back scheme
– Trade-in option
– CRM
System = Save Your Self Time Energy Money
36. Key Advantages(3)
• Stackable
• Minimum of six storeys possible in checkerboard
formation to give incredible volume efficiencies.
37. Key Advantages(4)
• Easily shipped
• Utilizing existing infrastructure used for the
transportation of standard shipping containers
38. Key Advantages(5)
• Precise fabrication
• The modules are factory finished and fitted
• Pre-wired and pre-plumbed using the latest
technology and equipment
39. Key Advantages(6)
• Aesthetic diversity
• The modules adapt to a wide varieties of
architectural designs and styles.
40. Key Advantages(7)
• Environmental performance
• Use high performance materials with low embodied energy
• Adopt “R.A.R.E” objectives by Dr Mark Luther
• Renewable: energy-conserving and energy-producing products and
materials
• Adaptive: site, weather, season-sensitive, and climate responsive
• Recyclable: flexible, reusable, simple to construct, relocate and de-
construct
• Environmental: working with nature and its forces, touching and/or
impacting upon the Earth lightly
42. Major Applications
• Low density homes
• Medium density homes / townhouse
• High Density / Multi-Storey Apartments
• Mining industry
• Defence housing
• Holiday & remote homes / Leisure accommodation
• Homes for disaster stricken areas
• Students’ accommodation
• Public housing
• Retirement / Lifestyle villages / Hospitals
43. Conclusion
• PowerHouse System (PHS) is highly innovative, technologically
advanced and environmentally friendly.
• PHS effectively tackles the‘hot’ issues in the housing market in
a timely fashion.
• PHS creates employment, improves environment and living
standard.
• PHS has potential to yield high ROI.
• PHS makes a perfect alternative solution to the housing
affordability and shortage issues.
