What is actually going on with the Construction & Property market in New Zealand at the moment?

The past year in the New Zealand market has been a rollercoaster, to say the least.

As we all waited for the election results, a change in government brought a fresh wave of anticipation. However, after the Christmas holidays, expectations were still hanging by a thread. During the first 100 days of the new government, we saw a spark of positivity, but this was quickly overshadowed by disappointing financial results from numerous companies in February and March. Now, as we approach the release of the May budget, everyone is on tenterhooks, hoping for some certainty to anchor their strategies.

Despite this uncertainty, the construction and property sectors continue to buzz with activity. Projects are alive at every stage — from feasibility and design to delivery. Yet, the pulse of these developments varies significantly across different segments of the industry.

Residential Property Development:

In the residential sector, whether it’s apartment blocks or a few townhouses, developers are hesitant to launch pre-sales campaigns. Most are waiting for interest rates to stabilise or decrease by year-end, which is expected to spur a flurry of new projects in 2025. This anticipated change has frozen the recruitment for development manager roles momentarily. However, by early 2025, we expect these roles to proliferate, attracting those currently in senior project management consultancy positions to the more glamorous development sector.

Client-Side Property Teams:

Based on our insights, client-side teams have diligently managed their portfolios while closely monitoring the project landscape. Some have proactively restructured, making strategic decisions to either outsource or bring in-house their property, projects, and facilities teams.

Project Management Consultants:

Project management consultants, especially in the educational and Kainga Ora sectors, are facing tough times with notable redundancies. However, those who have pivoted to infrastructure projects are finding robust opportunities. At One Eighty Recruitment, we are actively hiring for these roles, like the TSA position currently available.

PQS Firms:

PQS firms are traditionally cautious and profit-conscious. Those that have diversified into infrastructure or maintained strong, long-standing client relationships are navigating current challenges more successfully than others.

Main Contractors:

This sector has always been challenging. The successful contractors are those who have survived the past decade by nurturing key client relationships and maintaining flexible workforce management. They handle multiple projects simultaneously, adjusting their staff numbers as needed.

Subcontractors:

Subcontractors fall into two camps. The first group still charges premium rates, riding the high of the past construction boom, which has notably ended. The second group, however, adapts to the changing market by cultivating strong relationships with main contractors, providing quality service, and maintaining a balance between profit and competitive pricing.

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