Property fuels NZ economy

Judged by its economic contribution, property is New Zealand’s largest industry and its fourth largest employer after healthcare, manufacturing and retailing.

The Property Council, which represents professionals and companies, commissioned a survey by Urban Economics about property’s economic significance.

Women, who made up 24 per cent of property-related jobs, earned on average $45,800 compared with $69,200 for men. This is close to the disparity for all jobs in all industries.

The average amount earned by New Zealand workers in construction, management and real estate was $60,000, which compared with all industries at $56,300.

The study found that property contributed $29 billion directly to the national economy, with another $53b of flow-on benefits, excluding valuation gains.

About 8 per cent of New Zealand’s workforce, or 160,000 people were employed directly, but it varied in different cities. In Canterbury, property and construction was the second biggest employer after manufacturing with 12 per cent of all workers or

32,080 people in the sector. There were 53,050 Aucklanders working in property, the fourth largest employer after manufacturing, healthcare, professional services, and retailing,

Nationally, the total value of commercial property was about

$94b. The total value of homes in Auckland was $137b, and offices

$38.8b, while Wellington’s housing stock was valued at $47b and commercial properties at $9.8b, with Christchurch houses worth $60b and commercial properties $13.8b.

The $29b of total direct economic contribution from property was made up of $9.7b from construction and associated services,

$13.4b from property operation,

$1.3b from real estate services, and

$5.4b from scientific, architectural and engineering activity.

The $29b equated to 13 per cent of national gross domestic product and was the biggest growth industry between 2007 and 2016.