Business Whanganui Newsletter May 2016

Business Whanganui Newsletter

May, 2016

Logo for the Top7 Intelligent Community Forum
Welcome to the May edition of our newsletter.

We welcome Chatham Air to our Auckland route


Whakatane branded plane

Whanganui’s economy still continues to track steady with healthy signs of growth as always we have a number of events and tenders worth viewing this month check them out.

To use the navigation aids please use the highlighted red areas to navigate to different sections of the newsletter and use the links  ” (Top)” to get back to the top of this newsletter.

Your feedback is important to us please follow this link and let us know what you think about this newsletter it is important to us that we provide a useful tool for our business community.

Business Matters

  • ANZ reports recent data indicates the business confidence levels are
  • NZ property market -House price records smashed across New Zealand as ‘Halo Effect’ grows .Chronic lack of supply fuels regional growth in house prices and sales volumes
  • Retail card sales for New Zealand still in a growth phase for the same period last year.
  • New Vehicle  sales in New Zealand have continued to grow and in recent months still a very health indication of business confidence.
  • Our traffic light system gives a snapshot of the current economy. In April the trend has remained stable with growth still a dominant feature.
  • Whanganui’s economy:- very encouraging house sales volumes with a 89% growth in sales volumes, sales of new vehicles  strong, building consents   remain steady. Electronic Card sales were still buoyant in April. Tourism– The number of bed nights are up again.
  • Tender Notifications and expressions interest
    • Contract No.1697: Upokongaro to Whanganui Cycleway – Design Build
    • Contract No.1721: Street Lighting Maintenance and Improvements 2016 – 2019.

Happening in Whanganui…

  • 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.
  • Introducing Viewpoint Whanganui Whanganui District Council’s dedicated online community hub.
  • If you are interested in more detail or would like a copy of this newsletter as a PDF file or any suggestions/additions please fill out our survey.

Please remember to join  us on our Whanganui and Partners Facebook page to keep up with what is happening on a regular basis we like to be liked as well!

Chris Heywood 

Source WDC May 16
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New Zealand Economy

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Executive Summary
This month the Treasury has not given an update but the ANZ have published the results of their confidence survey which offers a very good account of what is happening on the National front. On the whole still a very positive picture.

  • Firms’ own activity expectations lifted from +29 to +32. The historical average is +27. That’s an economy with some backbone. Construction is lord commander and even agriculture popped into the black.
  • Profit expectations nudged up from +13 to +16. The master of coin should be happy.
  • Employment intentions eased from +16 to +13.
  • Investment intentions were unchanged at +11.
  • Export intentions were a tad higher (+22 versus +21).
  • Residential investment intentions were unchanged at +36; housing in general sits on the economic throne. Commercial construction intentions eased from +30 to +24.
  • Inflation is contained. Inflation expectations were unchanged at 1.4% and pricing intentions hardly moved (+17).
  • The picture, after adjusting for seasonality, is largely the same.

Read the full report here….
source: ANZ Bank

NZ House sales (Top)

  • House price records smashed across New Zealand as ‘Halo Effect’ grows .
  • Chronic lack of supply fuels regional growth in house prices and sales volumes
  • Sales volumes hit new levels and median house prices reached new record highs across more regions of New Zealand than ever before, according to the latest figures released today by REINZ, source of the most recent, complete and accurate real estate data in New Zealand.
  • Record median prices were reached in Waikato/Bay of Plenty, Taranaki, Canterbury/Westland and Otago. This shows the growing ‘Halo Effect’ of rising prices around New Zealand is strengthening in the regions where it is already present, and moving on to new regions, driven by a chronic lack of supply.
  • On a seasonally adjusted basis the number of dwellings sold in April 2016 rose by 12.8% compared to March, indicating that the normally-expected drop in sales between March and April was far smaller than usual. And compared to April 2015, all regions recorded increases in sales volume.
  • At the same time, the availability of properties for sale has fallen by over one third over the past 12 months, with a number of regions seeing declines of more than half. Days to sell, another measure of demand has also fallen by more than 20% over the past 12 months in nine of the twelve regions.
  • The national median price was $490,000 for April, an increase of $35,000 (7.7%) on April 2015, and down 1.0% compared to March. Excluding the impact of the Auckland region, the national median price rose $29,000 to $382,000 compared to April 2015.

“Anecdotal evidence suggests that investors outside of Auckland are increasingly looking to real estate investments to improve their yields compared to bank deposits. First home buyers are also taking advantage of low mortgage rates, putting pressure on the number of properties available for sale. ” (REINZ) Chief Executive Colleen Milne

Read the Full report here…
source REINZ

NZ Retail Card Spend (Top)
April was a positive month for retail card sales with increases in all sectors except Apparel and Fuel. The decrease in fuel sales is indication of lower pump prices which we have all experienced over an extended period we predict this trend is changing as oil prices reach more realistic levels which we are already noticing . Fuel sales have remained in negative territory for an extended period which continues to significantly contribute to the current lower inflation rates we have been experiencing.
Top Categories were takeaways, bars cafes and restaurants and accommodation which is a consistent trend.

Source Marketview

NZ New Vehicle Sales (Top)
New Vehicle sales in New Zealand have continued to grow and in recent months the 12 month moving average growth has however continued to increased at a slower rate. In April 2015 a total of 6 150 new cars were sold and in April 2016 the figure was once again up to 6 790 a small increase of 0.4% on the twelve month moving average.  April has been a good month contributing to an improvement in the 12 monthly outlook .

Source MIA


Local Economy

House sales have once again lead the way in the local economy with yet again good sales volumes recorded in April with median prices still subdued .

Whanganui and Region House sales (Top)
Sales volumes rose 35% compared to April 2015, with sales rising 113% in Manawatu Country, 89% in Wanganui and 28% in Levin. Compared to March sales volumes fell 6%, with sales rising 40% in Manawatu Country, 10% in Feilding and 1% in Wanganui. On a seasonally adjusted basis sales across the region rose 40%, indicating that the drop in sales in April was far lower than normal.
The median price across the region rose $17,000 (+8%) compared to April 2015 with prices rising 27% in Levin, 13% in Palmerston North and 10% in Manawatu Country. Compared to March the median price rose $6,000 (+3%), with prices rising 18% in Levin, 6% in Palmerston North and 1% in Feilding.
The number of days to sell eased by six days in April, from 29 days in March to 35 days in April. The number of days to sell improved by 18 days compared to April 2015. Over the past 10 years the average number of days to sell during April for the region has been 47 days.
REINZ Chief Executive, Colleen Milne noted that, “First home buyers and investors are very active in the region, with the number of properties available shrinking rapidly. Investors are being attracted by low interest rates both on deposits and borrowing, while properties attractive to first home buyers are in short supply. Over the past 12 months the level of available properties for sale has fallen by 50%.”
Graph Commentary 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.

  

Source MREINZ


Whanganui Card Spend(Top)
The top category this month was Hardware and Homeware at 14.7% over the same 12 month period of last year with Bars cafes and restaurants still showing continued growth at 11.6 % over  the same period last year.

Top 3 sectors were

  1. Hardware and Homeware 14.7%
  2. Bars cafes and restaurants 11.6%
  3. Appliances 8.7%

The bottom three sectors were

  1. Apparel (-7%)
  2. Fuel (-5.6%)
  3. Furniture and Flooring(1.5%)

The accommodation figure has been unreliable as a measure as these figures do no include all methods of payment – such as online and bank transfers so tends to be erratic when looking at the accommodation figure.

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 April 2016 shows that Wanganui has tracked consistently in the 3% range over the last 6 months.

Source Market View
Whanganui had better year on year electronic card sales than most of the TLA’s in the Manawatu Whanganui Region and still above the New Zealand Spend by 0.33%


Whanganui New Vehicle Sales (Top)
In April 2016 new vehicle sales were up on the previous year again with 59 new vehicles sold as opposed to 52 sold in the previous year retaining the moving average growth in the 2% range there are large fluctuations in sales from month to month but the overall trend is still in positive territory.

 

Source MIA

Building Consents – Whanganui (Top)

In April 2016 there were 87 Building Consent applications. Based on a 12 month moving average we have again seen a slight improvement in number of consents passed with the value of consents down as we move into winter and more low value consent applications processed the long term trend remains at an average of $ 5million per month on average.

Source Whanganui District Council


Tourism (Top)
Due to the delay in receiving data we report on the previous month in relation to occupation figures.
In the 12 months to March 2016 guest nights were up by 3.7 % which indicates growth for the 12 month period as well which is a really positive sign of recovery. In March 2016 we have seen a good growth over the same period last year.

Source-Stats NZ

News



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Introducing Viewpoint Whanganui

Viewpoint Whanganui is Whanganui District Council’s dedicated online community hub that provides further opportunities for the community of Whanganui to take part and be involved in decision making processes. This complements Council’s conventional formal consultation by enabling the community to provide feedback at various stages of a project’s lifecycle rather than predominantly towards the end of the cycle.
If you would like to learn more about Viewpoint Whanganui, please see the site’s About page.


Introduction to Business Seminars
GST Workshops
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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
  • business structures
  • income tax
  • expenses you can claim
  • good bookkeeping tips
  • GST and more
When:
  • 16 August 2016
  • 15 November 2016
GST Workshops
  • what is GST
  • GST registration
  • record keeping – cash book
  • basic adjustments
  • GST Filing
  • IRD online service
  • using IRD’s interactive Tool for business
When:
  • 21 June 2016
  • 20 September 2016
  • 29 November 2016
Where all workshops and seminars are held at :
CLAW Whanganui
76 Guyton Street
Whanganui

Booking is essential as there are limited spaces.

email: advisory.palmerstonnorth@ird.govt.nz
ph 0800 377 774
For further information visit their web site www.ird.govt.nz


Tender Notifications(Top)

Request for Proposal

Contract No.1697: Upokongaro to Whanganui Cycleway – Design Build.
WDC are inviting tenders from suitably experienced contractors for the Design and Construction of a cycleway extending from Upokongaro to Whanganui.

The scope of work includes, but is not restricted to;

  • Design and design review of proposed cycleway, extending from Upokongaro to Whanganui.
  • Building and Resource Consent(s)
  • Health and Safety
  • Stakeholder Engagement – Negotiation with landowner
  • Traffic Management
  • Location and relocation of services
  • Construction of the works as per the accepted design and limits of construction
  • Preparation and handover of as-built documentation
  • Maintenance of cycleway for 3yr period.

A full copy of the tender documents are available online from Tenderlink.com only atwww.tenderlink.com/whanganui Tender Link Reference: WANGDC-725619
If you are not already registered with Tender Link, please visit the above website and register as a supplier.  It is free and easy to do.  For any Tender Link enquiries please call 0800 698 363.
Enquiries regarding any aspect of the contract documents should be submitted in writing (e-mail is acceptable) to the Whanganui District Council, marked for the attention Rick Grobecker atRichard.Grobecker@whanganui.govt.nz no later than three days before the tender closing date.
Electronic online tender submissions accepted only via www.tenderlink.com/whanganui
Tenders must be submitted no later than 4.00pm Monday, 20th June 2016.
For any further assistance, please contact the Tenders and Contracts Secretary, Lana Treen, atlana.treen@whanganui.govt.nz or on (06) 349 3105.
 

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Request for Tender

Contract No.1721: Street Lighting Maintenance and Improvements 2016 – 2019.
Whanganui District Council are inviting tenders from suitably experienced contractors to maintain the Whanganui District street lighting system and undertake street lighting improvements for an initial period of three years.
The scope of work includes but is not restricted to;

  1. Routine inspection, identification and recording of all faults.
  2. Preparation of Work programmes.
  3. Submission of reports on progress and faults.
  4. Attending to emergency situations that may arise from time to time.
  5. Replacement of existing streetlights, poles, fittings and circuits.
  6. Inspection of Shear base poles as per manufacturer’s assembly, installation and maintenance instructions.
  7. Maintaining the Whanganui District Council ‘SLIMS’ database.
  8. Installation of LED Luminaires. Approximately 1000 per year for 4 years. (The principal shall supply the luminaires for the bulk LED Luminaire replacement).

The full copy of the request for tender documents is available online from Tender Link only atwww.tenderlink.com/whanganui  Tender Link Reference: WANGDC-727008
If you are not already registered with Tender Link, please go to www.tenderlink.com/whanganui  to do so.  It is free and easy to register.  For any Tender Link enquiries, please phone 0800 698 363.
Enquiries regarding any aspect of the tender documents must be submitted in writing (e-mail is acceptable) to Whanganui District Council, marked for the attention of the Engineer’s Representative for the Contract, Daniel Cairncross, Roading Traffic Safety Engineer, at daniel.cairncross@whanganui.govt.nz no later than three days before the tender closing date.
Tenders must be submitted online only via Tender Link at www.tenderlink.com/whanganui no later than 4.00pm Friday, 17 June 2016
For any further assistance, please contact the Tenders and Contracts Secretary, Lana Treen, atlana.treen@whanganui.govt.nz or on 06) 349 3105.
 

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