New Zealand to slash construction costs by welcoming overseas building products

Construction import reform: New Zealand is set to dismantle barriers that restrict construction companies from utilising foreign building materials, aiming to drive down prices, announced Prime Minister Christopher Luxon on Thursday.

Since 2019, construction costs in New Zealand have surged by 41 per cent, partly attributed to the escalating prices of materials. The shortage of plasterboard in 2022 further hindered house building, as Fletcher Building, responsible for over 90 per cent of domestic plasterboard production, struggled to meet demand.

Luxon said in a press briefing, “We anticipate heightened competition across various product categories.”

Foreign product approval

Under the new policy, the government will acknowledge building materials from reputable foreign jurisdictions, permitting certifying authorities to approve products meeting specific international standards. Additionally, building products certified by established foreign schemes will be approved.

Julien Leys, CEO of the New Zealand Building Industry Federation, welcomed the move, stressing the importance of the recognition process for overseas accreditation industries. Leys remarked, "While this shift promises increased availability of products for homeowners and builders, it will take time before we witness a tangible reduction in costs."

Fletcher Building opted not to provide a comment on the matter.

(With Reuters Inputs)