Wood panelings, a new technology that has seen the cost of building new homes skyrocket in China, are now a luxury item.
A report by Woodfin Australia, a leading manufacturer of wood panels, found that in China alone, they are now priced at around $1,200 per sq metre.
“That’s more expensive than in any other country in the world, but not the UK or US,” said Woodfin CEO Tom Hodge.
“China is a very big market for wood panelings.
They’re a high-margin product.
And, as a result, it’s going to have an impact on the value of wood panel stock in China.”
The report, which was released on Thursday, showed that while the cost per square metre of wood was $1.16 in China compared to $1 in the US, the price was actually cheaper in other markets.
“It’s not a big difference but we are seeing some price drops in China,” Mr Hodge said.
“For example, in the Shanghai, they’re starting to see price drops on their wood panel stocks as they go into the year 2020.”
“We’re seeing the Chinese people say to themselves ‘you can’t afford to pay more than $2,000 per square meter’.”‘
I’m not going to pay that much for a piece of wood’While the price of wood is a relatively high price, it is far from a one-size-fits-all.
“In Australia, it will only cost you about $800 to build a new home, and if you are buying the panels that you can’t use in your house, you’re paying about $400,” Mr Bickett said.
However, in China it’s not just about the price, the quality is often a major factor as well.
“They are very, very good quality.
They can’t be made from anything that is going to damage the home,” Mr Aiken said.
While Woodfin is not one of the biggest players in the wood panel business, its products are being used in many of the world’s largest cities, including New York, Dubai, Beijing, Dubai and Hong Kong.
“We don’t have the same level of expertise, so we’re working very closely with our Chinese partners,” Mr O’Connor said.
“We’re trying to make sure we’re as close as we can be with China, to be as close to their specifications, and so that we can do that very quickly.”
Mr Hodge says the quality of wood products made in China is also not the same as those made in the rest of the globe.
“Our work is very much based around quality and the quality that we are using, but there are a lot of Chinese wood products that are very good and we know that they are going to be cheaper,” he said.
Auckland has a strong tradition of woodworking and its woodworkers are still going strong.
“Woodworkers have been around for a long time, they’ve been around in our community for a very long time,” Mr Gee said.
Mr Gee is a woodworker and former apprentice at one of Auckland’s oldest and most famous woodworking shops, the Great Western Woodworks.
He says the local industry has been successful for decades.
“The people that work there are fantastic and they are doing amazing work.
I think they’ve just been the backbone of the industry for quite a long, long time.”