In the lead-up to the 2023 election, both major political parties in New Zealand are vying for the mandate to usher in a new era of significant infrastructure development.
Regardless of the election outcome, the commitment to significant spending on transport infrastructure over the next decade is poised to have a major impact on all property asset classes, as outlined in the latest Colliers New Zealand Research report released on Friday.
Chris Dibble, Director of Strategic Advisory at Colliers, emphasises the positive impact on the construction sector if a major works programme begins.
“The identification of a pipeline of infrastructure projects will provide a higher degree of certainty to future workflows, assisting in long-term planning,” Dibble says.
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Labour has identified 14 land transport priorities, which would inject $20 billion of funding to the national infrastructure pipeline.
The National party is proposing a $24.8 billion investment in roads and public transport.
Regardless of whoever forms the next Government, the stage is set for a substantial uplift in New Zealand's infrastructure.
“Spending on infrastructure schemes will not only support the economy and create jobs during the delivery phase but also modernise and increase the resilience of New Zealand’s infrastructure over the longer term,” Dibble says.
“While the upper North Island will be the primary beneficiary of these investments, both parties are committed to nationwide improvements.
“Key motorway enhancements north of Auckland, public transport investments, and infrastructure upgrades are planned from Auckland to Wellington and Christchurch.”
According to Ian Little, Associate Director of Research at Colliers, the property sector stands to gain significantly from these developments.
“Improved accessibility and connectivity from new roading and rail links will stimulate the development of new residential subdivisions, creating demand for retail and entertainment facilities,” Little says.
Consultants will experience an increased workload during the design phase, contributing to employment growth and a demand for office space.
Little says enhancements to commuter corridors will allow for more substantial intensification of residential, office, mixed-use, and retail spaces.
“The industrial and logistics sectors will reap benefits, with opportunities arising during and post-development. There will also be a boost for logistics facilities in an increasingly online retail environment.
“As the election draws near, it's evident these infrastructure policies are not merely campaign promises but signals of a substantial boom that will help to lift New Zealand's economic and property landscape for years to come.”
- Article supplied by Colliers
