While New Zealand inflation is running at 2.2%, the building costs in Auckland in the past year increased 17%. According to information provided by Statistics NZ, Auckland building consent costs rose from $1846/sqm in 2016 to $2153/sqm in 2017. The national costs over the same perios rose from $1812/sqm to $1946/sqm only. The surge has unfortunately led to the cancellation of many large Auckland apartment projects across the city and left others under discussion.

The building materials costs in New Zealand is 30% higher than the Australian level and the costs will increase further for the small scale of firms. In order to lower the construction cost, Andrew Little from the Labour Party, said it was necessary to bring more affordable housing to the market. The KiwiBuild programme planned by the Labour Party will use scale to reduce prices and will ease the boom/bust cycle by creating strong, steady demand, said Andrew.

The Labour Party will also help finance the construction of a house-building factory in Gisborne and use Affordable Housing Authority to reduce the building costs.

Via NZ Herald. Read the full article here.