LATEST NEWS

LATEST NEWS

LATEST NEWS

BAY OVERTAKES AUCKLAND IN ECONOMIC GROWTH

November 26, 2015

The Bay of Plenty has knocked Auckland off the top spot as New Zealand's best-performing region in the latest ASB/Main Report Regional Economic Scoreboard, as business confidence booms, the job market sizzles and real estate agencies report a record year. For the first time, the Bay took the top spot in June-September quarter, according to the report.

Chief economist Nick Tuffley said the Bay had much to boast about. "We're hearing stories about happy, cashed-up Aucklanders moving to the region. Indeed, house sales, house prices and construction were all star performers for the Bay of Plenty over the quarter," Mr Tuffley said. Auckland slipped to second-equal in the rankings with Northland. The scorecard for the Bay of Plenty included Tauranga, Western Bay, and the area from Rotorua to Opotiki. Tauranga Colliers managing director Simon Clark said historically low interest rates were driving "a record year for us in transactions and next year is looking pretty much the same". Tauranga was seen as the best place to invest outside of Auckland because of its growth and positive cashflow returns, he said.

Ross Stanway, chief executive of Eves and Bayleys Real Estate said it would also a be milestone year and although real estate had been a significant driver, businesses expanding in the region had provided job opportunities. "I think it's fantastic news, there has been some signals along the way over the past few months ... but the really healthy aspect of that is, it is sustainable." Priority One chief executive Andrew Coker said there was confidence across most business sectors. "Not only are we seeing a large migration of Aucklanders and expats to the Western Bay of Plenty, which is driving residential construction, and personal and professional service job growth, our key and emerging sectors are performing strongly - kiwifruit, manufacturing and technology," he said.

At the same time, the Bay was relatively unaffected by the challenges faced by regions that had a strong dairy industry. Priority One projects manager Annie Hill said strong job growth in higher value industries "means that we will have a more secure economic future in the medium to long term".

Zespri grower and external relations general manager Dave Courtney said it was set to earn nearly $2 billion in sales revenue this season with strong growth forecast next year. The kiwifruit industry employed about 10,000 people year-round and the workforce swelled to nearly double at the height of the season, he said. New Zealand Kiwifruit Growers Inc chief executive Mike Chapman said over the next four years another 500 permanent workers were needed in the kiwifruit industry.

Tauranga Chamber of Commerce chief executive Stan Gregec said the latest figures were further proof the boom was real. But he added that becoming the fastest growing place in New Zealand was not all good news. "It puts pressure on infrastructure and services that are struggling to keep up with demand and poses challenges to develop other amenities that are part of living in a modern city."

Figures from the Tauranga City Council showed the total value of new dwellings in 2014/15 reached $351,102,383 compared to $289,769,327 in 2013/14 while in July 2015, August, September and October $167,983,286 was registered.

Rotorua Chamber of Commerce chief executive Darrin Walsh said people in Auckland were looking for greener pastures. "Confidence in the Rotorua economy is improving, tourism numbers are going well and the housing market is starting to pick up. When you tip all that into the pot with Tauranga's growth, it's not surprising the Bay has edged Auckland out for the top spot." Future looking positive after quiet quarter. It has been a year of two halves for Jonty Peacocke's Plastec Design and Manufacturing business but "now we are flat out," he says.

They had hired three new staff this year and the future was looking positive, despite going through a quiet quarter at the beginning of 2015, Mr Peacocke said. The company, which was established 20 years ago specialised in store fitouts and manufactured components for displays and stands. About 90 per cent of its products were for the domestic market and included clients such as Z Energy, Mobil and Energizer while it also exported to the islands and Australia. The company was in a good position, he said. "There is a lot of construction happening and people are still shopping. At the moment we have work ahead of us and new clients so I am feeling pretty confident." Others in the manufacturing industry in Tauranga that the company worked with "are very busy and that typically means they are positive and I expect in the same position as us."

Written by David Porter, Cameron Hall
Bay of Plenty Times

BAY OVERTAKES AUCKLAND IN ECONOMIC GROWTH

The Bay of Plenty has knocked Auckland off the top spot as New Zealand's best-performing region in the latest ASB/Main Report Regional Economic Scoreboard, as business confidence booms, the job market sizzles and real estate agencies report a record year. For the first time, the Bay took the top spot in June-September quarter, according to the report.

Chief economist Nick Tuffley said the Bay had much to boast about. "We're hearing stories about happy, cashed-up Aucklanders moving to the region. Indeed, house sales, house prices and construction were all star performers for the Bay of Plenty over the quarter," Mr Tuffley said. Auckland slipped to second-equal in the rankings with Northland. The scorecard for the Bay of Plenty included Tauranga, Western Bay, and the area from Rotorua to Opotiki. Tauranga Colliers managing director Simon Clark said historically low interest rates were driving "a record year for us in transactions and next year is looking pretty much the same". Tauranga was seen as the best place to invest outside of Auckland because of its growth and positive cashflow returns, he said.

Ross Stanway, chief executive of Eves and Bayleys Real Estate said it would also a be milestone year and although real estate had been a significant driver, businesses expanding in the region had provided job opportunities. "I think it's fantastic news, there has been some signals along the way over the past few months ... but the really healthy aspect of that is, it is sustainable." Priority One chief executive Andrew Coker said there was confidence across most business sectors. "Not only are we seeing a large migration of Aucklanders and expats to the Western Bay of Plenty, which is driving residential construction, and personal and professional service job growth, our key and emerging sectors are performing strongly - kiwifruit, manufacturing and technology," he said.

At the same time, the Bay was relatively unaffected by the challenges faced by regions that had a strong dairy industry. Priority One projects manager Annie Hill said strong job growth in higher value industries "means that we will have a more secure economic future in the medium to long term".

Zespri grower and external relations general manager Dave Courtney said it was set to earn nearly $2 billion in sales revenue this season with strong growth forecast next year. The kiwifruit industry employed about 10,000 people year-round and the workforce swelled to nearly double at the height of the season, he said. New Zealand Kiwifruit Growers Inc chief executive Mike Chapman said over the next four years another 500 permanent workers were needed in the kiwifruit industry.

Tauranga Chamber of Commerce chief executive Stan Gregec said the latest figures were further proof the boom was real. But he added that becoming the fastest growing place in New Zealand was not all good news. "It puts pressure on infrastructure and services that are struggling to keep up with demand and poses challenges to develop other amenities that are part of living in a modern city."

Figures from the Tauranga City Council showed the total value of new dwellings in 2014/15 reached $351,102,383 compared to $289,769,327 in 2013/14 while in July 2015, August, September and October $167,983,286 was registered.

Rotorua Chamber of Commerce chief executive Darrin Walsh said people in Auckland were looking for greener pastures. "Confidence in the Rotorua economy is improving, tourism numbers are going well and the housing market is starting to pick up. When you tip all that into the pot with Tauranga's growth, it's not surprising the Bay has edged Auckland out for the top spot." Future looking positive after quiet quarter. It has been a year of two halves for Jonty Peacocke's Plastec Design and Manufacturing business but "now we are flat out," he says.

They had hired three new staff this year and the future was looking positive, despite going through a quiet quarter at the beginning of 2015, Mr Peacocke said. The company, which was established 20 years ago specialised in store fitouts and manufactured components for displays and stands. About 90 per cent of its products were for the domestic market and included clients such as Z Energy, Mobil and Energizer while it also exported to the islands and Australia. The company was in a good position, he said. "There is a lot of construction happening and people are still shopping. At the moment we have work ahead of us and new clients so I am feeling pretty confident." Others in the manufacturing industry in Tauranga that the company worked with "are very busy and that typically means they are positive and I expect in the same position as us."

Written by David Porter, Cameron Hall
Bay of Plenty Times

2015. All rights reserved.