New houses being built in Hobsonville Point, Auckland. Photo: RNZ/Calvin Samuel
Cautious optimism has returned to the residential building sector with more than 60 percent of businesses expecting the economy to improve over the next 12 months (63 percent), along with their own business (62 percent).
"There are signs we are entering a new phase of the economic cycle. One that still carries risk, but also real momentum," Master Builders chief executive Ankit Sharma said.
"Whilst the recovery is patchy, and we cannot overlook there are building companies across the country who are still finding things tough, however, there is a general sense that the building sector is shifting from surviving, to delivering at a scale that secures the future, and the country's growth trajectory."
Master Builders state of the sector report also says most New Zealand homeowners described their recent build as a positive experience.
"Despite the negative media narrative over the past few years, the survey found that 72 percent of homeowners reported no significant delays with their builds.
"Where there were delays, this was most often caused by consenting, though subcontractor and product availability and weather also played a role - factors outside of the builder's control.
"Encouragingly, most projects came in on or under budget, with only 37 percent running over mainly due to cope or design changes, unclear initial estimates, and product price increases."
However, Sharma said the industry was still facing challenges with rising construction costs the number one constraint for the sector, followed by access to finance, with consenting and soft consumer demand rounding out the top concerns.
He said 70 percent of the sector was working with more than one Building Consent Authority (BCA), and 72 percent had experienced 'stop the clock' requests beyond the 20-day statutory timeline.
"One-in-four have faced 10 or more requests for additional information before achieving Code Compliance Certificate."
He said consenting hurdles were a problem that needed to be resolved.
"We're ready to partner with government, councils, and lenders to turn today's cautious optimism into a sustained recovery," Sharma said.
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