New report finds: Property accounts for 1/8th of New Zealand’s economy
New Zealand’s property market is arguably one of our country’s hottest topic of contention. Most agree that it’s generally overpriced, but few focus on the massive positive affect that it has on our country and our people.
A new Property Council report has shed light on that, revealing that the property industry directly contributes to an impressive 13 per cent of our economy. That’s more than both the agriculture and health industries combined.
This report measures property’s massive contribution and reveals the positive effects it has, from employment to its considerable annual revenue. We’ve looked a little closer at the numbers to gain insight into the epic scales of New Zealand’s property industry.
Economic impact of the property industry
“The report confirms what we as an industry have always known, property is the backbone of New Zealand.”
The property industry means infrastructure improvements, employment, investment opportunities and roofs over heads. The report estimated that property’s total impact on the economy in 2016 was a whopping $83.4billion – making it New Zealand’s largest industry.
In total, the report estimated the value of all land and buildings in NZ at $1 trillion – which is more than the value of our stock market – infrastructure and machinery combined.
“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,” Said Connal Townsend, Property Council chief executive in a May 11 media release.
What these numbers also reveal, is that property is a massive part of what makes our country what it is. The industry plays a part in the lives of all Kiwis. Because of that, it should be the people, the industry and the government’s priority to fix its problems and affect positive change.
Property employment in New Zealand
“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.”
Regardless of its issues the property market here in New Zealand provides so much for so many New Zealanders. In fact, 1 in 12 Kiwis are employed directly by the industry with an average salary of $60,200 per annum. It’s one of the biggest employers in the country, second only to health care and social assistance.
Property also provides brilliant investment opportunities for every day New Zealanders. KiwiSaver for example has 2.6 million members, 1.8 million of whom are invested in property to the value of $1.8 billion. Thanks to the stellar growth that the property market has experienced of late, those KiwiSaver nest eggs are quickly increasing in size, providing better financial futures to investors of all shapes and sizes.
Townsend commented again on how the property industry is woven into the very fabric of our lives and that its success and ours as a nation are one in the same:
“We are an industry that creates prosperity, jobs and a strong economy. 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.”
Our country’s property industry is not without its problems but few are. However, it’s clear that it will continue to flourish, putting roofs over people’s heads, contributing to our economy and employing thousands of Kiwis in the process.