New Zealand’s housebuilding boom has been propelled by a new construction window.
A new construction law that opened to the public on Wednesday means owners of commercial and residential properties can now build more than one new building a year.
The building window, which is the same for commercial and rental properties, was set up to help build houses and apartments.
It means that the number of building permits issued to build more units has more than doubled since the window was set to open.
A builder’s association says the increase in new building permits has been due to the building window.
The New Zealand Building Industry Association (NZBIA) says the building law has given builders a new way to market their homes.
“There’s a lot of work that needs to be done in order to make sure the new building industry is strong,” said the NZBIA’s general manager of housing, Joe Collins.
New Zealand’s biggest builders, the Auckland-based RWE and Wellington-based Wellington-listed BNZ, have both seen their market share increase.
RWE is up by nearly 40 per cent over the past year and BNZ is up a further 14 per cent.
But the NZBCA is disappointed that builders are not building as many new houses as they used to.
We are seeing a lot more building in the city centres and the outer suburbs, Collins said.
“There are more people moving into these areas than there are people living in these areas.”
It means there is a lot less space for building, and it means there’s less opportunity to build in the urban core.
This is just a short-term thing, but the construction industry has been under siege for the last decade or so and it is going to take a while to get back on its feet.” “
People are just building a lot faster and more quickly,” he said.
This is just a short-term thing, but the construction industry has been under siege for the last decade or so and it is going to take a while to get back on its feet.
“RNZ’s Collins said the city’s housing shortage was a “key driver” of the increase.”
The fact that people are choosing to live in more compact housing and being more aware of the benefits of density is a key driver,” he explained.
However, Mr Collins said Auckland’s construction boom was still in its early stages.
While the city was experiencing record-breaking demand, the housing shortage remained “a key driver”.
He said the supply of new homes had improved, but there was still a long way to go before the supply was fully matched.
In the coming years, RNZ expects to see a boom in new construction and rental housing in Auckland.
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