The idea of opening your own dental practice may have crossed your mind - and now could be the perfect time to make it a reality. While there are still challenges, such as rising construction material costs (despite a slower rate of increase in 2025) and a nationwide shortage of dentists, several favourable conditions are helping to offset these barriers. Recent government tax changes, falling interest rates, and competitive finance options have created a unique window of opportunity for dentists ready to take the next step toward ownership.
For many practitioners working in overbooked practices or seeing unmet demand in their communities, the question isn't whether opportunities exist but whether now is the right time to act on them.
a country short on dentists
New Zealand has a dentist shortage that's both significant and well-documented. According to market analysis, we have only 3,336 practising dentists as of 2021 serving a population of 5.12 million people. That works out to roughly one dentist for every 1,535 New Zealanders.
Meanwhile, our population continues growing at approximately 0.7% annually, yet our dental workforce isn't keeping pace. Unlike countries such as Australia where market saturation is becoming an issue, New Zealand faces the opposite problem.
The 2023/24 New Zealand Health Survey found that nearly half of adults (44.9%) reported unmet need for dental care due to cost. This suggests strong underlying demand that current capacity simply can't meet.
REGIONAL OPPORTUNITIES STILL EXIST
New Zealand's geography creates pockets of underserved communities where dental access remains limited. These aren't necessarily remote locations either: some suburban and provincial areas struggle with insufficient dental services relative to their population.
If you've been working in a practice that's constantly overbooked, you've probably already identified potential locations where providing additional services by opening a dental practice would be genuinely welcomed. The key is matching your expertise with areas that have sustainable patient bases but limited current provision.
The FINANCIAL PICTURE HAS IMPROVED
Several recent changes have made the economics of opening a dental practice more attractive.
New government tax incentive
The "Investment Boost" programme launched in Budget 2025 allows businesses to immediately deduct 20% of new asset costs in the first year, then claim normal depreciation on the remaining 80%. This accelerated depreciation doesn't increase total deductions over an asset's life, but provides valuable cash flow benefits in year one.
For dental practices, this means significant savings on equipment purchases. Whether you're investing in dental chairs, X-ray machines, sterilisation equipment, or practice management systems, this incentive substantially reduces the upfront cost of your dental surgery fitout.
Manageable setup costs
With average build costs for a new practice around $750,000, the financial barriers are more manageable than many practitioners expect, particularly when factoring in the new tax incentives. This figure covers everything needed for a complete dental surgery fitout and equipment installation.
Accessible financing options
Interest rates have become more favourable for business investment, and banks understand dental practices as stable, long-term investments. With competitive finance options available and a solid business plan, securing funding for opening a dental practice has become increasingly accessible for qualified practitioners.
GETTING THE SETUP RIGHT FROM DAY ONE
Opening a dental practice involves dozens of moving parts that need to align perfectly. From securing the right location and managing council approvals to coordinating trades and ensuring equipment arrives on schedule, the complexity can be overwhelming for practitioners trying to manage it alongside their current workload.
Our team handles everything from initial feasibility studies through to final handover, meaning you can focus on your patients while we manage the project. As dental practice builders with over 12 years of experience in New Zealand, we draw on the expertise of architects, interior designers, project managers, builders, and tradespeople who specialise in dental and healthcare spaces.
MARKET CONDITIONS WON'T STAY THIS FAVOURABLE FOREVER
The current opportunity exists because several factors have aligned temporarily. The government's Investment Boost incentive runs for a limited time, and as more practitioners recognise these opportunities, competition for prime locations will intensify.
New Zealand's dental schools are gradually increasing their output, and immigration policies may eventually address workforce shortages through overseas recruitment. While these changes will take years to impact the market significantly, early movers will secure the best locations and establish patient bases before competition increases.
Ready to explore your options? Use our dental fitout design cost calculator to get a clear picture of what your investment might look like.
