Economic property powerhouse

Property continues to hold the title of New Zealand’s largest industry, according to new insights from Property Council New Zealand.

The latest analysis reveals the sector’s direct contribution to GDP has soared to $50.2 billion, an impressive increase of $25.4 billion since 2012. This figure now accounts for 15% of the country’s total GDP. Leonie Freeman, Chief Executive of Property Council New Zealand, highlights the findings of the 2024 Property Industry Impact Report, produced in collaboration with Urban Economics.

“The report emphasises the sector’s substantial impact, with property surpassing other major GDP contributors such as manufacturing (10%), agriculture, forestry, and fishing (6%), and health (7%),” says Leonie. “In 2022, the broader economic influence of the property industry was a staggering $142.7 billion. This includes a direct impact of $50.2 billion and additional economic activities from suppliers and employees. Property stands as the second-largest employer in Aotearoa, providing jobs for 10% of New Zealand’s workforce, with 235,030 individuals employed in the sector.

“One intriguing insight is the significant number of New Zealanders who indirectly invest in property through KiwiSaver schemes, with 2.4 million people holding investments in this asset class. KiwiSaver funds allocate $3.6 billion (3.3%) to property, reflecting widespread participation across all fund types,” she adds.

As of 2023, the value of listed property companies on the NZX stands at approximately $32 billion, representing 20% of the total value of the New Zealand stock market. When combined with the $1900 billion value of the nation’s residential property stock and the $350 billion value of commercial property stock, the sector emerges as a colossal economic force.