New Zealand Property Industrys Contribution Nearly Doubles to $50.2B Over a Decade

Highlights:

• The New Zealand property industry’s direct contribution to the economy nearly doubled to $50.2 billion, accounting for 15% of GDP from 2012 to 2022.
• Total economic impact, including flow-on effects from suppliers and employee spending, reached $142.7 billion, with real estate services alone contributing $92.4 billion.
• Average property values across all regions surged by 49% from 2019 to 2023, driving growth in related industries like construction and finance.

Report highlights significant growth in the sector's economic impact

The New Zealand property industry’s direct contribution to the economy nearly doubled, reaching $50.2 billion, or 15% of the country’s GDP between 2012 and 2022, according to the 2024 New Zealand Property Industry Impact Report. This report, produced by Urban Economics for Property Council NZ, sheds light on the property sector's massive influence on the national economy over the past decade.

Key Findings

The report highlights that the total economic impact of the industry, including indirect effects from supplier activity and employee spending, reached an astonishing $142.7 billion. Urban Economics calculated that real estate services alone contributed to $92.4 billion in flow-on effects, reflecting the sector's critical role in New Zealand’s economic landscape.

Surge in Property Values

From 2019 toa 2023, property values across New Zealand surged by an average of 49%, boosting the sector’s overall contribution and reflecting strong demand in the real estate market. This rise in value has had a ripple effect on various related industries, including construction, finance, and legal services, all of which have seen substantial growth as a result.

A Key Driver of Growth

Property Council NZ noted that the sector has been instrumental in driving growth in New Zealand’s broader economy. "The property industry is not just about buying and selling homes; it is a critical pillar of New Zealand's economic infrastructure, generating jobs and investment opportunities," said a spokesperson for the Council.

As the country continues to grapple with housing supply challenges, the property industry's ongoing expansion will likely play a pivotal role in addressing these issues, as well as supporting long-term economic stability.

Conclusion

The report underscores the property industry's vital importance to New Zealand’s economic health, with its direct and indirect contributions helping to fuel a wide range of sectors. As the industry continues to evolve, its role in shaping the country's economic future is expected to grow even further.

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