The NZ construction market has experienced a strong sustained period of growth over the past 6 years (since circa 2011), with the total construction market maintaining growth of 7% year on year. This has been fueled in a number of key areas which were the Christchurch rebuild, housing shortages, and a commercial construction boom in Auckland as well as to a lesser extent national infrastructure projects.
Auckland – Current value $15B (increase to $16B in 2021)
Over half of the total growth in the NZ construction market in 2015 came from residential housing projects in Auckland (58%), and is projected to account for more than half again in 2017 (53%). The Auckland market will continue to account for a third of the total construction market into 2021. Auckland needs to build 94,400 homes by 2021 to keep up with population demands, with an overtaking trend towards multi-unit dwellings.
Canterbury – Current Value $6.5B (decrease to $4B in 2021)
New Zealand’s fourth largest region by population, but second largest construction market due to the 2011 Christchurch Earthquake and rebuild effort. The bulk of the residential rebuild effort has been completed, leveling off in 2014. However they still require circa 15,000 homes to be built per year. This is complimented by the onset of large commercial construction projects, but will progressive slow until half current output by 2021.
Waikato – Bay of Plenty – Current value $6B (decrease to $5.5B in 2021)
Covering a large area of the middle of the North Island (below Auckland), growth has been driven by more achievable housing prices, and business attracted to the region with easier access to growing infrastructure in the region, and affordable leasing. The region also has access to the largest port by cargo volume and second largest port by container output in New Zealand and a growing horticultural and sheep/dairy farming sector. Current rate of construction growth in 24% year on year.
Wellington – Current value $2.5B (maintain until 2021)
The country’s capital is growing at a rate of 16% with a slightly stronger non-residential construction market, however they are forecasting growth in multi-unit residential properties in 2018. The bulk of commercial construction is low-rise 4-10 story buildings outside of the city’s CBD. There are also a number of large road and infrastructure projects like Transmission Gully.
Demand in New Zealand
There is a strong ongoing demand in New Zealand for construction professionals keen to contribute their skills to a robust construction economy. We are working worth a wide range of leading firms on the look out for Engineers, Architects, Quantity Surveyors and Project Managers. If you are interested in finding out what opportunities could be available for you in New Zealand, or you are open to making the move, get in touch with our UK based construction specialist Vikki Cox on email vcox@kiwicareers.co.uk or if you are in New Zealand already sstapleton@tylerwren.co.nz
If this is not for you, but you know someone who might be interested in a move out to New Zealand we reward successfully placed referrals – so get in touch today.