In this edition we welcome Air Chathams with an open day. Please support them by attending the open day on 31st of July at the Whanganui airport a great opportunity to see all of their aircraft and even take a 20 minute flight in their historic DC3. Book your next Auckland flight here … or Learn more about the open day here
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Treasury The economy appears to have maintained solid momentum over the first half of the year.
Our traffic light system gives a snapshot of the current economy.
Whanganui’s economy:-house sales volumes with a 30% growth in sales volumes sales of new vehicles still picking up , building consents have remained steady. Electronic Card sales were still growing and steady. Tourismstill in growth mode with 3.5% growth over the 12 month period.
Happening in Whanganui…
UCOL, Whanganui and Partners and Chamber of Commerce Business Forumpresent
The IRD will be presenting a number of seminars about Starting a business as well as GST workshops , if you know someone who is starting a business or you would like a refresher then this is well worth attending.These seminars are free of charge you just need to book your place.
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(Top) Executive Summary The economy appears to have maintained solid momentum over the first half of the year. Labour demand was very strong in the March quarter but rapid labour force growth led to unemployment rising in the quarter. Robust real wages, along with high migration and tourism inflows, supported retail spending in the March quarter. Costs faced by businesses remain subdued but there are signs of increased price pressures. The OTI goods terms of trade rose in the March quarter and net exports have held up better than expected. On balance, the economy appears to be doing slightly better so far this year than anticipated in the Budget Update. Read the full report here…. source: Treasury
National median house price passes $500,000 for the first time
Five regions also hit new record median highs New Zealand’s national median house price has reached a new record high, passing the $500,000 mark for the first time to hit $506,000.
Data gathered by REINZ for May 2016 shows that five regions have also hit record high median sale prices, as the Auckland market holds firm. The Waikato/Bay of Plenty region recorded a record median sale price for the fourth consecutive month, hitting $419,000. Record median prices were also reached in Taranaki ($343,250), Wellington ($465,000), Canterbury/Westland ($435,500) and Central Otago Lakes ($707,250).
Inventory is falling nationwide, with a 41% decline in properties available for sale year-on-year Auckland’s annual rate of increase in median prim (7.5%) is now well below the national median price increase rate (10%) Auckland was the only region to see an increase in the number of days to sell (32, up 3 days)
NZ Retail Card Spend (Top) Good retail card spend was experience in May with the apparel sector still under pressure. Top Categories were takeaways, bars cafes and restaurants and accommodation which has been a consistent trend for number of months.
NZ New Vehicle Sales (Top) May was yet another good month for new vehicle sales with growth on the same month last year just shy of 10%. There has also been a recovery in the 12 month moving average growth which has moved from 0.1% to 0.7% ove the last three months this is a good indicator of the stability in this sector. In May 2015 a total of 6802 new cars were sold and in May 2016 the figure was once again up to 7 502 . The slowing growth since October has reversed and become positive growth again.
House sales have lead the way in the local economy with yet again good sales recorded once again the local indicators we monitor are still showing positive growth which is good for Whanganui.
Whanganui and Region House sales (Top) Sales volumes rose 35% compared to May 2015, with sales rising 54% in Levin, 52% in Manawatu Country and 30% in Wanganui. Compared to April sales volumes rose 11%, with sales rising 24% in Levin, 8% in Wanganui and 6% in Palmerston North. On a seasonally adjusted basis sales across the region fell 1%, indicating that the rise in sales in April was about in line with normal. The median price across the region rose $16,900 (+8%) compared to May 2015 with prices rising 36% in Levin, 17% in Wanganui and 15% in Feilding. Compared to April the median price fell $1,000 (-0.4%), with prices rising 18% in Wanganui, 12% in Levin and 2% in Feilding. On a seasonally adjusted basis the median price increased 1% compared to April. The number of days to sell improved by one day in May, from 35 days in April to 34 days in May. The number of days to sell improved by 14 days compared to May 2015. Over the past 10 years the average number of days to sell during May for the region has been 53 days. The weeks of inventory in the region has fallen by 18 weeks over the past 12 months to 17 weeks, and by two weeks compared to April. REINZ Spokesman, Bryan Thomson noted that, “First home buyers continue to be very active in the region, although investors appear to have taken a step back from the market. The number of properties available for sale continues to fall rapidly, with the weeks of inventory falling more than 50% over the past 12 months. Vendor expectations are lifting, albeit slowly.” The median price trend is now easing, with the volume trend continuing to rise. The days to sell trend is now also rising. The overall trend for the region is now improving.
Whanganui Card Spend(Top) The top category this month was Appliances with Bars cafes and restaurants still showing continued growth.
Top 3 sectors were
Hardware and Homeware
Bars cafes and restaurants
The bottom three sectors were
Fuel (Lower pump prices- which in effect is a positive)
Apparel (flat and affected by changed market dynamics)
Accommodation – This is only reflects card sales and not indicative of tourism which is still growing.
Card spend comparison by region monthly growth over previous year
Source Market View Card spend comparison by region month growth over previous year
Card spend comparison by region monthly growth over previous year dollar value of goods purchased May 2016.
Source Market View Whanganui has slipped to 2.8% growth in card sales and now hold 3rd place for growth in the region behind Ruapehu and Rangitikei which are respectively showing growth of 11,9% and 5.4%.
Whanganui New Vehicle Sales (Top) In May 2016 new vehicle sales showed good growth again with 70 vehicles sold in the month of May 2016 up on the 52 sold in the same month of the previous year pushing the moving average growth to 2.1% there are large fluctuations in sales from month to month but the overall trend is still in positive territory. The trend over the medium term still remains positive in spite of the erratic nature of sales in this sector.
In May 2016 there were 93 Building Consent applications. Based on a 12 month moving average we have again seen an improvement in number of consents passed at 4% growth with the value of consents still indicating a stable trend in the region of $ 5 million per month on average.
In 12 months to April 2016 guest nights were up by 3.5 % which still indicates growth for the 12 month period. We still see signs of recovery with accommodation levels at similar levels to April 2015 which is positive for this sector.
Introducing The Sarjeant Gallery Redevelopment The Redevelopment of the Sarjeant Gallery has been discussed, commented on and planned, since the mid-nineties. The 2011 Canterbury Earthquake and subsequent impacts on insurances, liabilities and building codes brought the discussions to a head when, in 2012, it was discovered that the 1919 Gallery stands at just 5% of current building code.
This expedited a relocation of the Gallery collection and staff and catapulted the plight of the ailing gallery from a ‘nice to have’ to an urgent necessity. Behind the scenes a redevelopment team, headed by Greg Anderson, Sarjeant Gallery Senior Curator, Nicola Williams, Sarjeant Gallery Trust Chair and Whanganui District Council has been working tirelessly for the past two years to fundraise the necessary funds to see the redevelopment become a reality.
In recent months this work has begun to pay off and the start date for construction and reconstruction edges ever closer. With the proposed build programme beginning in late 2017 this project is now imminent and the $34m cash injection the community will reap as a result will have far reaching economic impacts. Join Greg and Nicola as they discuss the potential economic benefits for the two year construction period and beyond.
Introducing Greg Anderson and Nicola Williams Greg Anderson: Born in 1972 and hailing originally from Auckland, Greg moved to Wanganui in September 2007 to take up the lead role at the Sarjeant Gallery Te Whare O Rehua – Whanganui. Greg studied first at Auckland University where he gained both a B.A. and an M.A. (Hons) in Art History. Having completed these degrees and gained experience in public and private galleries in Auckland, he then went on to study another Masters Degree in Fine Arts Administration & Curatorship, at the University of London’s prestigious Goldsmiths College.
Nicola Williams MBA: Nicola’s career has spanned the finance industry and NZ fishing industry for 18 years having acted as finance director for deep-water fishing company Wanganui Seafood’s Ltd up to the sale to Sanfords in 1994. Since then she has involved herself in a number of philanthropic activities including as a trustee for the Wanganui Life Education Trust, for Kagara school development in Tanzania, Chairman of the ERUPT Lake Taupo Arts Festival Trust and has been a patron of the Sarjeant Art Gallery since 1990. She has also served a term as a Taupo District Councillor. (Top)
Come and join us in welcoming Air Chathams to the Whanganui Airport
Date: Sunday 31st July 2016
Time: 9:00 am – 3:00pm Venue: Whanganui airport Entry: Free – come along to the airport between 9:00am and 3:00pm
Introduction to Business Seminars GST Workshops (Top) The IRD will be presenting a number of seminars about Starting a business as well as GST workshops , if you know somone who is starting a business or you would like a refresher then this is well worth attending. These seminars are free of charge you just need to book your place.
Introduction to business seminars
Working smarter with the IRD online services
expenses you can claim
good bookkeeping tips
GST and more
16 August 2016
15 November 2016
what is GST
record keeping – cash book
IRD online service
using IRD’s interactive Tool for business
21 June 2016
20 September 2016
29 November 2016
Where all workshops and seminars are held at : CLAW Whanganui 76 Guyton Street Whanganui