A Turning Point for our Sector
As we move deeper into 2025, there are signs that the tide might be starting to slowly turn for the building and construction sector. The journey out of the downturn has been long, but we are beginning to see glimmers of recovery - in the numbers, in the policy environment, and in the conversations, we're having with our members. Momentum is starting to build and with momentum comes opportunity.
GDP figures a modest but important step
The latest GDP figures confirm what many in the sector have been cautiously feeling: New Zealand is heading in the right direction. While the growth is modest, it marks a shift in sentiment. Economic confidence and construction activity go hand in hand. When people feel confident, they invest - whether it's in a new build or a renovation.
The recent reductions in the Official Cash Rate have already helped ease access to finance, making lending more attractive. The GDP announcement adds another layer of reassurance. For clients who have been sitting on the fence, this could be the signal they’ve been waiting for.
We know that enquiries are up across the membership, but the conversion intosigned contracts remains sluggish. That said, house prices have now largely stabilised, and construction costs are finally becoming more predictable. With mortgage rates under continued downward pressure, we believe we’ll see stronger recovery through the rest of the year.
Constructive Regional Summits kick off
This builds our backdrop for the first ever Regional Constructive Summit series.
These events focus on each region individually and identify issues that are especially relevant to you, your business and community. We will carry on the themes and conversations from 2024’s national Constructive event, and workshop regional specific solutions.
This is about fostering stronger regional connections and making sure we advocate on the issues that truly matter. The insights we gather, will help to better plan our topics and speakers for Constructive 2025, which is set to take place on 11 and 12 September at Aotea Events Centre, Auckland. Be sure to mark it in your diary.
This year’s Regional Summits come at a particularly important time. We know the pressures members have been under, and we also know that now is the time to take stock and prepare for what’s next. We hope to see many of you there.
Government commits to consenting reform
Consenting continues to be an issue raised consistently across the membership, and we are pleased to see the Government taking steps towards consenting reform. The current system is cumbersome, inconsistent, and costly. Fixing it won’t be simple, but it is critical if we want to unlock productivity and better outcomes for consumers.
The Government is proposing the introduction of a nationally consistent consenting system, alongside options for greater use of digital platforms and the ability for accredited builders to self-certify low-risk building work. These are promising signals, and we’re pleased to see them given serious policy attention.
Master Builders is working closely with Ministers and officials as the details of these reforms are developed. As always, our focus will be ensuring the changes are practical, achievable, and genuinely improve the experience for builders and clients.
Backing public-private collaboration
It’s also worth noting the Minister for Infrastructure, Chris Bishop’s recent address at the NZ Infrastructure Investment Summit.
In his speech, the Minister outlined six clear priorities for his infrastructure portfolio:
- Establishing National Infrastructure Funding and Financing Ltd – (announced December 2024)
- Developing a 30-year National Infrastructure Plan.
- Improving infrastructure funding and financing.
- Improving the consenting framework.
- Improving education and health infrastructure.
- Strengthening asset management.
The National Infrastructure Funding and Financing Co (NIFFCo) will be responsible for producing a robust, forward-looking infrastructure pipeline that provides clarity for both public and private sector investors. This approach will support long-term planning, enable smarter use of capital, and better coordinate project delivery across the country.
PPPs will play a vital role in this renewed strategy, helping to deliver complex and large-scale projects such as roads, schools, and hospitals. Minister Bishop made clear that private capital must have a seat at the table to meet New Zealand’s growing infrastructure needs.
He also acknowledged historic project delays and cost overruns, and committed to improving delivery through clearer accountability, streamlined regulation, and better project oversight. Housing featured prominently in the speech, with infrastructure investment positioned as essential to unlocking urban growth and making development more viable.
This marks a significant shift in approach. By aligning government priorities with industry expertise and private capital, we have a real opportunity to address New Zealand’s longstanding infrastructure and housing challenges. Master Builders is supportive of this direction and is ready to work alongside government and sector partners to help turn these ambitions into tangible outcomes.
Looking ahead
There’s no question that the last few years have tested our sector’s resilience. But they have also highlighted our adaptability, our problem-solving mindset, and the strength we have when we work together.
The Regional Summits, the consenting reforms, and the uptick in economic indicators all point to a sector that is moving - not fast, and not without friction - but forward.
I look forward to seeing many of you at the Constructive Summits, and to continuing to shape a better future for our industry together.
Ngā mihi nui,
Ankit Sharma
CEO, Master Builders