Wairoa Region Economic Update April 2018

wairoa healthy steps

Kia ora all. It seems to have been a busy past month with Easter coming and going, the weather being fairly rough at times and slowly but surely Winter approaching. As usual, there is a heap happening in our rohe. To those involved in the Farming Expo event recently, well done, great effort. Also, all the best to our local kapahaka groups in the weekend, I know you will do us proud. Get down to Lambton Square to tautoko not only our groups but the kapahaka competition/festivities in general. Susan Tipuna well done on your national award, so inspiring. Also get out there to your local ANZAC services, here’s a quote which sums it up for me “They gave their today for your tomorrow”.
For a change this months article centres around the Hawke’s Bay and Gisborne economies.
Hawke’s Bay’s regional economy has experienced steady growth over the last year. Population growth rate has increased to 1.5% per annum, up from 1.0% pa in the June 2016 year. The increase in the rate of growth is a result of net overseas migration to the region increasing from -225 people in 2014 to 760 people in the 12 months ended December 2017.
Hawke’s Bay’s accommodation sector has continued to expand with the number of guest nights sold in hotels, motels and backpackers increasing by 9.2% over the last 12 months. The labour market conditions have also continued to improve with the number of people employed increasing by 4.2% in the 12 months ended December 2017, and the unemployment rate fell from 5.9% in December 2016 to 5.6% in December 2017.
The number of residential building consents has increased in Napier and Hastings by an annual average rate of 8.3% and 4.0% per annum (respectively) between 2012 and 2017.
Like the Hawke’s Bay economy, Gisborne’s economy has experienced steady growth over the last year. Regional population growth rate has averaged 1.2% per annum over the last two years.
Gisborne’s accommodation sector has continued to grow with the number of guest nights sold in hotels, motels and backpackers increasing by 11.3% over the last 12 months. Labour market conditions have also continued to improve, with the number of people employed increasing by 4.2% in the 12 months ended December 2017 and the unemployment rate fell from 5.9% in December 2016 to 5.6% in December 2017.
The number of residential building consents issued in Gisborne has increased over the last year and is currently at 85% of the long-term annual average number of consents.
The Hawke’s Bay and Gisborne residential markets continue to see price increases relative to a year ago while sale volumes over the same period have eased. A lack of listings continues to be a major contributing factor resulting in prices being held up while the number of available properties limits sale numbers. In general, the Wairoa economy/property market continues to be positive, underpinned by a steady primary sector.


Cheers, have a good month.

Lucas Paku

Director

Registered Valuer | BBS (VPM)


Posted 11 months ago