New Zealand’s property market outlook is broadly positive: can prefabricated homes solve the housing crisis?

New Zealand’s property market has been turbulent in recent years, blowing hot and cold like a southern hemisphere winter.

 

 

Looking at the property market’s fluctuations in 2019, the main negative influences have been the foreign buyer ban, the removal of negative gearing and the introduction of a capital gains tax. These factors have led some people to see an uncertain future for New Zealand’s housing market.

 

However, according to the House Price Index (HPI) released by the Real Estate Institute of New Zealand (REINZ) in March this year, house prices across New Zealand rose 7.2% compared with the same period last year, with only Auckland recording a slight decline.

 

 

REINZ summary of changes in house prices across New Zealand, March 2019

 

These figures also support the views expressed by Lily Investment Group chairman Jia Min in our recent interview. As chairman of the investment team behind SugarTree, New Zealand’s largest apartment development, he expressed strong optimism about the country’s housing market:

 

“There is no reason to be pessimistic about New Zealand’s property market in the long term. We have a concept of ‘three things increasing and one decreasing’. First, the population keeps increasing, which means demand for housing is bound to keep growing too.

 

Second, wealth is also increasing. Everyone knows average wages are rising. Wealthy people from around the world congregate in New Zealand, and most end up in Auckland. Third, costs are increasing. The only thing decreasing is the supply of land — land in prime locations.”

 

As Jia Min said, land infrastructure costs and government tax changes directly increase construction costs, indirectly pushing the property market upwards.

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Prefabricated housing has therefore become one of the construction industry’s most discussed topics in recent years. Mass production and assembly can substantially reduce both time and labour costs, potentially making it the key to resolving New Zealand’s housing and house price crises.

 

But how can prefabricated construction be carried out in New Zealand? How can weaknesses in the country’s prefabricated housing market be overcome? How far ahead is prefabricated construction overseas? Can “Made in China” work with New Zealand for mutual benefit? These are questions New Zealand’s construction industry will need to explore and address together.

 

The New Zealand International Building Expo and Summit (NZIBES), organised by the New Zealand Chinese Building Industry Association, will be held at the Vodafone Event Centre from 16–18 August 2019.

 

The event’s seminar programme will bring together leading property industry figures and experts to discuss New Zealand’s property market. The summit, themed “Off Shore, Off Site”, will explore answers to pressing questions about prefabricated and offshore construction.

 

Scan the code to buy summit tickets

 

 

The exhibition on the 17–18 will bring together more than a hundred exhibitors from the property, construction and related industries to exchange ideas and build partnerships, while offering consumers the latest high-quality products and services.

 

 

The New Zealand International Building Expo and Summit (NZIBES) has become one of the country’s largest property and construction exhibitions. It has established its own brand around the theme “Collobration UP”, embracing the New Zealand Chinese Building Industry Association’s spirit of “Collabrotion, Innovation, Productivity”. It is increasingly becoming a bridge for mutually beneficial industry partnerships, a barometer of industry trends and a platform where consumers can obtain first-hand industry information and the best solutions.

 

Last year, the event brought 9,720 high-quality visitors to 33 well-known brands and 120 exhibitors, while 450 attendees took part in a seminar focused on the “KiwiBuild programme”; more than 630 guests attended the gala dinner.

 

The 2019 New Zealand International Building Expo and Summit looks forward to welcoming you!

Event dates: from 16 August 2019 until the 18th

Venue: Vodafone Events Centre

For exhibitor enquiries, contact: 021 363 389

Website: www.nzibes.com