New Zealand’s Top Residential Builders Revealed in Latest Rankings

Fletcher Living remains New Zealand’s leading builder by value, with projects worth $2.35 billion either ongoing or planned, as reported by construction research firm Pacifecon. The company is the residential arm of Fletcher Building, the nation’s largest construction and building materials company.Following behind are retirement village operators Summerset Group and Ryman Healthcare, valued at $1.5b and $1.3b respectively. GJ Gardner Homes came in fourth at $1.2b, with Mike Greer Homes in fifth position at $1.0b for the year ending March 2023. Franchise builder Jennian Homes ranked seventh, with a project value of $801.8 million.

In terms of number of projects, franchise companies like GJ Gardner, Signature Homes, Golden Homes, Jennian, and Mike Greer lead the way.

However, the past year saw a 9.1% drop in residential consent applications, down to 45,962. Despite this decrease, there remains a substantial amount of work due to low interest rates during the pandemic.

The research analysed the country’s top 200 builders, with 86.7% of projects completed by March 2023 and 13.3% in planning. The total build value for these builders was $32.5b, a 9% increase from the previous year.

Pacifecon recorded 1,990 projects in the construction phase, valued at $4.1b. Overall, there are 20,884 projects in the New Zealand building pipeline, totalling $354b in value.

Signs indicate that construction costs are becoming more stable. The Cordell construction cost index reported a yearly growth rate of 8.5% for the quarter ending in March, a decrease from the previous high of 10.5%.

Kelvin Davidson, CoreLogic’s chief property economist, believes the decline in new home consent numbers is easing demand pressures. He mentions that material availability has improved and prices for items like timber have stabilised. However, the aftermath of cyclone Gabrielle might increase construction costs in the future.