New Zealand’s building sector is poised for growth as the Government is set to pass legislation to open the door to thousands of overseas-certified construction products, aiming to slash building costs, boost innovation, and address long-standing supply issues.
At the centre of the reform is the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill, which will allow products approved in “trusted jurisdictions” to be used in New Zealand without lengthy approval delays. The move is expected to cut the product certification timeline from up to two years down to as little as three months.
“This is a major shakeup that will drive down the cost of building without compromising on quality,” said Building and Construction Minister Chris Penk last year, introducing the Bill alongside Prime Minister Christopher Luxon. “[It will] make it easier and more affordable for people to build or renovate a home.”
The changes come amid a backdrop of surging construction costs—up 41% since 2019 (as of April 2024)—and widespread frustration over the dominance of a few key players in the building materials market. A 2022 Commerce Commission study highlighted the industry’s vulnerability, citing limited competition and the infamous GIB plasterboard shortage as symptoms of a fragile supply chain.
Under the new regime, internationally certified materials—starting with high-impact products like plasterboard, insulation, and concrete—will be approved en masse. More than 12,000 products are expected to be cleared by July, with up to 250,000 available by the end of 2025. One example is Australia’s WaterMark plumbing certification, which alone could open New Zealand’s market to around 200,000 new products.
Penk stressed that product safety and suitability will remain paramount. Materials must meet “equivalent or higher” standards and be appropriate for New Zealand’s unique conditions, such as seismic resilience and weather resistance. “There is no lessening in quality, or the safety, or the sustainability of those products,” he said.
Local councils and Building Consent Authorities (BCAs) will continue to assess how products are used in specific projects. However, the Bill mandates that BCAs must accept internationally certified products once they’ve been recognised by the Ministry of Business, Innovation and Employment (MBIE), streamlining what has historically been a cumbersome and inconsistent approval process.
Industry players have responded with cautious optimism. Mike Fox, director of Easy Build Homes, welcomed the added competition but noted that firms will still need to do their own checks. “We want to be sure that anything that comes into the market is actually being checked and that there hasn’t been problems with it overseas.”
The legislation is part of a broader suite of building reforms aimed at improving productivity, reducing regulatory complexity, and easing the housing crisis. Other measures include consent exemptions for small projects, streamlined multi-proof designs, and a review of building code provisions to balance energy efficiency with affordability.
While the reforms have been largely welcomed, questions remain over long-term oversight and the impact on domestic manufacturers. Officials say safeguards are in place, but some warn of the risks of over-reliance on imported products if global supply chains falter again.
Still, the Government insists the reforms are a necessary step toward a smarter, more resilient construction sector. “We are not lowering standards,” said Perk, “instead we are removing unjustifiable regulations that are not adding value and enabling trusted qualified individuals with a proven track record of delivery to do the job.”
The Bill is expected to pass under urgency, with implementation beginning mid-year.