What global restructuring means for New Zealand’ s property market
From trade tensions and shifting capital flows to a recalibration of global alliances, the international landscape is experiencing a fundamental rewire, says economic advisor David Skilling of Landfall Strategy Group and author of the‘ Small World’ monthly economic policy newsletter.
While implications may feel remote at first glance, the global currents carry real consequences for Kiwi homeowners, investors and the future of New Zealand’ s housing market.
“ Many core features of the global operating environment are being rewired in real time,” he says.
We are witnessing a once-in-a-generation shift in the way nations interact with one another. From tariff wars to geopolitical realignment, global fragmentation is no longer a temporary disruption. While headlines often focus on defence, diplomacy or currencies, the ripple effects extend right down to our construction sites, family homes, and investment portfolios.
“ We are witnessing a oncein-a-generation shift in the way nations interact with one another. From tariff wars to geopolitical realignment, global fragmentation is no longer a temporary disruption.”
TARIFF DISCUSSIONS RESUME
There was once a time when the world’ s economic architecture was guided by predictability, open trade and coordinated policy. That era is now fading, and its unwinding has significant implications for the property sector in both New Zealand and across Australasia.
“ Tariffs are here to stay,” says Skilling. With the U. S. imposing a baseline 10 per cent tariff rate on a range of imports, and revenues forecast to reach $ 2.8 trillion over the next decade, this marks a return to strategic trade policy.
While this policy shift is aimed at reshoring industrial activity to the U. S., the implications will be felt globally.
For New Zealand, a small, export-driven economy, the knock-on effect may show up in the form of increased input costs, longer supply chains, and greater competition in traditionally open markets.
Domestically, this has the potential to reinforce a growing trend: the drive towards self-reliance. For landlords and developers, that may mean sourcing more products locally, building relationships with regional suppliers, and rethinking value-for-money beyond price alone.
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