PHOTO: The Big Question: Will More Global Products Mean Cheaper Kiwi Homes? FILE
In a bold move to tackle skyrocketing construction costs, the New Zealand Government has announced a sweeping reform aimed at breaking local building material monopolies.
🚨 From Monday, international product standards will be officially recognised for a range of materials, including:
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Plasterboard
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Cladding
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Windows
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External doors
🧰 Building and Construction Minister Chris Penk says the goal is clear: cut the cost of building a home by unlocking global competition.
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💬 “We Pay 67% More for Plasterboard Than the US”
“New Zealand has some of the most expensive plasterboard in the world,” says Penk.
“When our main supplier faced issues in 2022, prices soared up to six times normal rates just so builders could finish jobs.”
📉 New stats revealed by the Ministry show:
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NZ pays 38% more than Australia
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47% more than the UK
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67% more than the US for the same plasterboard
And with 97% of local supply controlled by a single company, critics argue it’s time for change.
🏗️ What’s Changing — And What’s Not
🆕 New International Product Standards Being Accepted:
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Removes red tape stopping importers
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Allows builders to choose globally approved materials
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Could speed up project delivery and reduce costs
⚠️ But Here’s the Catch:
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Will this really lower prices in the short term?
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Will shipping, testing, and compliance still slow things down?
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And will local suppliers quietly hike costs elsewhere to compensate?
🗣️ Industry Reaction: A Mixed Bag
✅ Supporters say it’s long overdue:
👷 Ankit Sharma, CEO of Registered Master Builders:
“This is a timely, practical reform. It’ll help reduce delays and boost affordability.”
🛠️ ACT’s Cameron Luxton:
“Builders are finally free to use trusted global materials. This puts pressure on the local giants to drop their prices or lose out.”
🤨 But Not Everyone’s Convinced…
💬 “Sure, we can import cheaper materials. But freight, compliance, and integration costs don’t disappear overnight,” said one Auckland-based developer.
💬 “It’s a good step, but homes won’t suddenly drop $100K in price next week.”
🧩 What This Means for Kiwi Homebuyers
🔍 While this announcement feels like a win, real relief for home buyers may take time.
Builders still face:
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Labour shortages
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Council bottlenecks
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Expensive land costs
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Risk-averse insurers
🏠 Translation?
More choice is a start — but don’t expect your builder to slash their quote tomorrow morning.