Commercial property owners

PHOTO: 123RF The construction sector wants the Government to underwrite construction projects.

Commercial property owners and developers are warning about 60 per cent of all planned construction and development projects are now uncertain and the sector needed Government help.

They said billions of dollars of developments could be cancelled or postponed and that would decimate the construction sector.

It follows their call five weeks ago for the Government to underwrite construction projects of commercial buildings, high-rise apartments, hotels, malls and office blocks.

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Property Council chief executive Leonie Freeman said a Property Council survey of its owner and developer members found that 60 per cent of planned projects worth several billion dollars were uncertain given the current economic climate.

“These statistics demonstrate the developer’s natural reaction to uncertainty. This outcome could have an enormous impact on the construction sector and the wider New Zealand economy,” Freeman said.

Industrial and commercial property developers were most cautious, signalling that 70 per cent of projects were uncertain, while residential developers indicated that around half of all projects were uncertain.