NZ Developers Might Sell Off-the-Plan Projects to KiwiBuild Programme

Auckland cityscape, North Island, New Zealand

New Zealand’s brand new government plans to hasten the Labour Department’s KiwiBuild programme, by proposing to buy developers’ off-the-plan projects, according to incoming Housing Minister Phil Twyford.

Twyford said that those with existing projects that are underway in Auckland and other cities should consider selling them if a part of those new homes fit the policy’s criteria. KiwiBuild involves the construction of 100,000 low-cost homes over the next ten years, with plans for building half of those in Auckland.

Risk Reduction

By selling their housing projects off the plan, developers may reduce their risk exposure from these projects, according to Twyford. In turn, handing them to the government could hasten development work and ensure the delivery of more affordable properties to first-time buyers.

Since a large portion of the homes will be in Auckland, Twyford said that the Auckland Council has begun to look for the best places. These locations include Henderson, Manukau, Panmure, Avondale and New Lynn. The massive target to build new homes also led the government to recruit more skilled workers, particularly those from the U.K. Aside from jobs, work that involves paint would open business opportunities for finishing product suppliers, ranging from an industrial vacuum cleaner to drywall lifters.

Offshore Workers

New Zealand seeks to hire around 65,000 new construction workers from the U.K. by 2022, amid a shortage of labourers. Greg Edmonds, Auckland Transport’s chief infrastructure officer, said that the sluggish construction activity in the European country provides a perfect opportunity to hire workers.

The LookSee Build NZ campaign will lure British workers by offering fishing, surfing, and cultural event “experiences.” The government expects the initiative to address an expected peak in construction demand in 2020.

It seems that the government’s plan to build 100,000 affordable homes will benefit property developers, construction suppliers, interested overseas workers and ultimately first-time home buyers.