Industry voices | Interview with Colliers International’s Chris Dibble: overcoming barriers to New Zealand–China property industry cooperation

In just over a month, the 2019 New Zealand International Building Expo & Summit will open at the Vodafone Events Centre. To give readers an early taste of the quality of this summit, we have invited Chris Dibble of Colliers International to speak with us. As Director of Research & Communications, he has deep insight into New Zealand’s property industry. At the summit, he will share his distinctive views on the opportunities and barriers facing cooperation between the New Zealand and Chinese property industries.

 

Recently, the NZ Herald interviewed New Zealand Chinese Building Industry Association president Xu Li and published a report stating: “Over the next eight years, Chinese developers have planned construction projects in New Zealand worth more than 11,000,000,000.”

 

 

Over the next eight years, Chinese developers have planned construction projects in New Zealand worth more than 11,000,000,000

 

Although Chinese developers have invested in high-profile residential projects such as Pacifica and Seascape, adding striking features to Auckland’s skyline, they have had little involvement in commercial property. Chris Dibble believes there are two main reasons for the current market situation:

 

Seascape, a project funded and developed by Shundi Group, adds a striking feature to Auckland’s skyline

 

First, risk avoidance

 

When investing in residential construction, Chinese developers can reduce potential investment risks through presales. Commercial office projects, however, usually cannot go on sale until the entire development is complete, exposing overseas investors to greater financial risk.

 

Overseas investors who are new to the country also lack knowledge of some local conditions, such as floor area ratio restrictions. Some recent projects have faced increased risks and costs later on because the groundwork was not properly laid at the outset. Nevertheless, Chris Dibble believes the market still offers many opportunities.

 

Second, brand recognition

 

Many Chinese developers draw on their brand recognition at home to attract buyers’ interest in their projects and generate market enthusiasm. Brand awareness and positive perceptions can indeed help some buyers feel confident about investing, offering a shortcut for Chinese developers entering the New Zealand market.

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However, many local commercial tenants in New Zealand have limited knowledge of overseas markets. Unfamiliar with these developers’ brands and successful projects, they harbour unwarranted doubts about them, adding to the challenges in the commercial property market.

 

To address these issues, Chris Dibble believes Chinese and New Zealand businesses should work more closely together and learn about each other’s strengths and capabilities. He said: “In global terms, New Zealand is a small country. We need to bring in many workers, skills, technologies, knowledge and capital from overseas. We will always face resource constraints.

 

 

“But when Chinese and New Zealand businesses work closely together and deepen their understanding of each other, we can jointly unlock more opportunities for the future. We should also improve our understanding and recognition of Chinese developers’ strengths and capabilities, because they will be an important part of the industry’s future.”

 

2019 New Zealand International Building Expo & Summit (NZIBES)

 

The 2019 New Zealand International Building Expo & Summit (NZIBES), organised by the New Zealand Chinese Building Industry Association (NZCBIA), will open at the Vodafone Events Centre, running from 16 August–18.

 

As one of the industry’s biggest events today, this year’s New Zealand International Building Expo & Summit (NZIBES) is establishing its own identity under the theme “Collaboration UP”. Embracing the New Zealand Chinese Building Industry Association’s ethos of “Collaboration, Innovation, Productivity”, it has steadily become a barometer of industry trends, a bridge for mutually beneficial cooperation among industry professionals, and a platform where consumers can access first-hand industry information and the best solutions.

 

 

For the summit presentations on 16 August, we have invited Chris Dibble to offer further analysis of New Zealand’s commercial property landscape and market conditions. David Kelly, chief executive of New Zealand Registered Master Builders, will also provide an in-depth explanation of the significance of the Construction Accord.

 

We have also invited prominent New Zealand economist Shamubeel Eaqub to deliver the opening address, Real Estate Institute of New Zealand (REINZ) general manager Lisa Gerrard to discuss the housing market, and China Architecture Design Institute expert Liu Gang, travelling from China especially for the event, to explore “Reflections and action on modernising China’s construction industry”.

 

Another highlight of this year’s summit is a panel discussion on prefabrication and offshore manufacturing, themed “Off Shore, Off Site”. The exceptionally strong guest line-up includes new Prefab NZ chief executive Scott Fisher, Silk Road Management managing director John Dalzell, Auckland Council Manager Inspections Jeff Fahrensohn, and GHD’s Hamish Davies and Nick Caulton. They will take part in a lively discussion about delivering prefabricated buildings in New Zealand.

 

2019 New Zealand International Building Expo & Summit speaking programme

 

The two-day expo on 17–18 will also bring together more than a hundred exhibitors from property, construction and related industries to exchange ideas and build partnerships. Entry is free for the public, with the aim of offering consumers the latest, highest-quality products and services.

 

2019 New Zealand International Building Expo & Summit sponsors

 

Everyone is welcome at the 2019 New Zealand International Building Expo & Summit (NZIBES)

16 August: Summit

17 August–18: Expo – free entry

Vodafone Events Centre

Summit tickets: https://www.eventfinda.co.nz/2019/2019-new-zealand-international-building-summit/auckland/manukau-city

Official website: www.nzibes.com

For business enquiries, please call: 021 363 389