New Legislation Aims to Cut Building Costs in New Zealand
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- New law aims to simplify access to affordable overseas building products in New Zealand.
- Bill removes red tape, increases competition, and helps reduce construction costs.
- The reforms will allow more product choices while maintaining strict building standards.
The New Zealand government has announced a major legislative change aimed at making building in the country easier and more affordable. Building and Construction Minister Chris Penk revealed the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill, which promises to simplify access to overseas building products.
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“Today we have introduced legislation that will improve access to a wider variety of quality building products from overseas, giving Kiwis more choice and injecting some competition into the market,” Penk stated.
The legislation addresses the long-standing issue of limited competition in the building sector. “We know that our building system lacks competition and that it is too expensive to build in New Zealand,” Penk said, highlighting how the market has been dominated by a few large companies, leading to price increases, supply disruptions, and a shortage of options.
Building costs have surged by more than 40 per cent since 2019, and New Zealand’s building productivity has remained stagnant since 1985. “It is unacceptable that it is around 50 per cent more expensive to build a standalone home in New Zealand than Australia,” Penk added.
To tackle this, the Bill will make it easier to import high-quality building products from overseas, injecting competition into the market. “Existing producers and suppliers will find themselves in a more competitive marketplace, which, in time should make a greater range of products available and drive down costs,” Penk noted.
The Bill also introduces changes to the Building Act to lower barriers for using international building products in New Zealand. These reforms aim to ensure that Building Consent Authorities (BCAs) can efficiently assess products while still adhering to strict Building Code requirements.
“These changes are part of a comprehensive package of reforms designed to make building in New Zealand easier and more affordable,” Penk said. In addition to these amendments, the government plans to streamline building consents and exempt smaller projects from paying the building levy.
Once enacted, the changes will allow New Zealanders greater access to the global building product market, enabling them to use a wider range of products at fairer prices.
The first reading of the Bill is scheduled for later this month.