Property is New Zealand’s largest single industry according to a report by economists and research analysts, Urban Economics.
The 2016 Economic Significance of the Property Industry to the New Zealand Economy report, prepared for Property Council New Zealand, was based on analysis of the property industry’s economic contribution, size, value, and employment numbers.
The report found that the property industry is the largest industry in New Zealand with a direct contribution to GDP of $29.8 billion or 13 per cent of total GDP, higher than manufacturing, agriculture, and health.
The property industry also grew by $11.7 billion over the 2007-2016 period, accounting for 16 per cent of the growth of the GDP over that period; more than double the growth of any other industry.
“The report confirms what we as an industry have always known, property is the backbone of New Zealand – it is the infrastructure of business and the homes that shelter us all,” Property Council Chief Executive Connal Townsend said.
The report said the wider economic impact of the property industry is significant, with a total contribution of $83.4 billion to the New Zealand economy.
The value of residential and commercial building stock was $489 billion; more than triple the value of shares and bonds on the NZ stock market at $136 billion.
160,800 people were directly employed in the property industry in March 2016, accounting for eight per cent of total employment in New Zealand.
The importance of property to New Zealanders’ personal wealth was also highlighted via Kiwisaver investments. Of the 33 Kiwisaver schemes in New Zealand, with a combined value of $36.0 billion (as of September 2016), $1.8 billion was invested in property.
“These statistics confirm, we are an industry that creates prosperity, jobs and a strong economy,” Mr Townsend said.
“The property industry impacts all our lives from the buildings we live, work and play in, to the buildings that allow us to teach our children and care for our elderly.
“Therefore, Property Council will continue to advocate and champion for quality urban growth and a vibrant property sector to drive economic and social prosperity because it benefits all New Zealanders.”