New Legislation Aims to Lower Building Costs and Increase Product Options

The first reading of the Bill is scheduled for later this month, with expectations that these reforms will make building in New Zealand both more affordable and efficient.

Building and Construction Minister Chris Penk has announced a major shake-up in the building sector aimed at reducing costs and improving access to quality building products. The newly introduced Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill seeks to ease the importation of building materials from overseas, providing Kiwis with more options and increasing market competition.

Penk highlighted that New Zealand's building industry is dominated by a few major companies, making it vulnerable to price hikes and supply chain disruptions, as seen during the GIB crisis in 2022. This lack of competition has led to skyrocketing building costs, which have increased by over 40% since 2019, with little improvement in building productivity.

He noted that it is 50% more expensive to build a home in New Zealand than in Australia, which is unacceptable. The Bill aims to address this by removing red tape, making it easier to import high-quality products and fostering a more competitive marketplace, which is expected to reduce building costs over time.

The legislation will also streamline the building consent process, allowing for minor variations without requiring new consents and exempting projects under $65,000 from the building levy. Building Consent Authorities will still ensure that imported products meet New Zealand's Building Code standards.

The first reading of the Bill is scheduled for later this month, with expectations that these reforms will make building in New Zealand both more affordable and efficient.