2024 Wrap-Up: Resilience, Lessons, and Opportunities for 2025
As 2024 draws to a close, we’re reflecting on a year that brought its share of challenges but also revealed clear opportunities and upward momentum. At Fox Group, we’ve been on the ground with developers, ensuring projects move forward and visions become reality. Here’s our take on the year that was, and what lies ahead in 2025.
Breaking the Traditional Mould
Traditional banks have long been the primary source of funding for property developers. However, the rigid criteria, lengthy approval processes, and strict regulations often posed significant challenges. Non-bank lenders, on the other hand, are not bound by the same constraints. This allows them to offer more flexible and creative financing solutions tailored to the unique needs of each development project.
The Construction Sector: Positives and Lessons Learned
Despite rising costs, labour shortages, and tighter margins, the construction industry showed its trademark resilience this year.
Key Positives:
Material costs stabilised: A welcome reprieve after years of volatility, offering confidence for future project planning.
On-site innovation: Developers embraced smarter management and modular techniques to improve efficiency.
Multi-unit builds on the rise: Duplexes, terraces, and smaller-scale developments delivered strong results, especially in regions like Christchurch.
Lessons Learned:
Adaptability is essential in a changing market. Managing cashflow remains critical for success. Partnering with a funding expert who understands the construction industry can be a game-changer.
Interest Rates: A Turning Point in Sight
Interest rates dominated 2024, but recent signs of stabilisation bring cautious optimism. Developers anticipating a more predictable lending environment are positioning themselves to move early in 2025.
At Fox Group: We’ve provided flexible funding to keep projects moving when banks couldn’t, helping developers take decisive action in a challenging year.
Christchurch: Leading the Way
While some regions stalled, Christchurch’s residential market continues to stand out:
Affordable, high-quality housing remains attractive for buyers and investors.
Population growth and demand for efficient builds drive opportunities.
Developers are delivering smart solutions, with duplexes and terraces leading the way.
Christchurch remains a region to watch, and Fox Group is proud to play a role in its ongoing success.
Development Contributions: Challenges and Solutions
Rising development contributions are adding cost pressure, but developers who plan ahead are finding opportunities that still stack up. With the right funding and strategic approach, projects are progressing despite the hurdles.
Innovation and Collaboration: The Bright Spots
Beyond its challenges, 2024 showcased remarkable collaboration and innovation across the sector. Organisations like Subdivision Advocacy NZ (SANZ) made significant progress in enhancing industry standards and efficiencies. Meanwhile, developers responded to constraints by embracing smarter design, advanced technology, and more efficient project delivery methods.
Why Developers Should Be Optimistic
As we look to the year ahead, there are clear reasons for optimism:
Interest rate stability will encourage confidence and unlock activity.
Material costs stabilising gives projects greater predictability.
Demand for housing remains strong, especially in regions like Christchurch.
Smarter building solutions are helping developers deliver efficiently without compromising quality.
For those ready to act, 2025 is shaping up to be a year of opportunity.
Fox Group: Your Partner for Growth in 2025
At Fox Group, we do more than fund projects – we partner with developers to drive their success.
We offer fast, flexible funding to help you seize opportunities quickly. Our team provides hands-on support, drawing on deep expertise in construction. Above all, we’re committed to backing developers who create the homes Kiwis need.
To our clients, partners, and followers – thank you for your trust and collaboration in 2024. We’re excited for what’s to come and look forward to helping you achieve even greater success in 2025.
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Contact us for your financing requirements and bespoke advice.