Industry achieves dramatic growth in a decade
The Property Council of New Zealand has deemed property officially the largest industry in the country, with its new analysis showing a direct GDP contribution of $41.2 billion, 15% of total GDP.
The Property Industry Impact Report 2021, commissioned by the council in partnership with Urban Economics, underscores the impact of the property industry as it dominates other GDP contributors, such as manufacturing (11%), agriculture (6%), and health (7%).
In 2019, the property industry’s wider economic impact totalled $115.6 billion, including a direct impact of $41.2 billion plus cumulative supplier and employee activity. It employs 9% of New Zealand’s workforce, nearly 200,000 people.
The figures continue to increase, recording a 19% ($19.6 billion) growth in the property industry’s direct contribution to GDP between 2009 and 2019.
“Perhaps even more interesting is the number of Kiwis who unconsciously invest in property via their KiwiSaver schemes, with 1.8 million of us having an investment in property. Across all 29 of New Zealand’s KiwiSaver schemes, $3.3 billion (4.4%) in KiwiSaver funds is invested in property,” said Property Council chief executive Leonie Freeman.
Read more: What’s happening to New Zealand’s lifestyle property market?
Freeman stated that the council’s data could help dispel the stereotypical image of a property investor that many of the public hold in their imagination.
“Many New Zealanders view property, especially commercial property, as reserved for the wealthy or elite when that couldn’t be further from the truth. If you want to see what the typical commercial property investor looks like, I suggest you pick up a mirror,” Freeman said.
This year, the value of property companies listed on the NZX was around $53.0 billion, representing 30% of the value of the entire New Zealand stock market. Adding the value to the $1,305 billion value of New Zealand’s residential property stock and $243 billion value of commercial property stock would result in one enormous economic contributor, according to the council.
“Property Council is proud to champion New Zealand’s largest industry. Property is about so much more than buildings or profit; it’s about people and communities. We chose to spend our lives in these spaces, to raise families, to create connections, to build businesses, to belong,” Freeman said.
