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Welcome to the July edition of our monthly newsletter.
The Ministry for Business Innovation and Employment released the Manawatu-Whanganui growth study on 31 July 2015 please see the detailed report and potential benefits to our region here…
Please view our traffic light system for a snapshot of the current economy. In spite of recent weather events we have still seen a fairly positive trend . In June thelocal economy was still on track with the national economy. With improvements in house sales and vehicle sales still trending flat, building consents have again shown moderate growth in numbers but values are down in line with reduction in larger projects, new car sales were once again down in June. Electronic Card sales were once again bouyant showing a positive trend very similar to May. The tourism results are still showing strong signs of recovery with sustained positive growth and a positive medium term outlook for the local economy.
UCOL are presenting another of their popular business forums the theme this month is “putting Whanganui on the map” please book early for this as places are limited for more information and booking details here…
Nominate our next top young executive see details here…
Please see the seminars on offer by the IRD this is a really great way to understand all business obligations in terms of the IRD if you know anyone who would benefit from these please pass this on as I have heard there is plenty of room for more to attend , we are still offering free broadband window decals for you to promote the service to your cuctomers.
If you are interested in more detail or would like a copy of this newsletter as a PDF file or any suggestions/additions please let me know. 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 Jan 15
(Top)
New Zealand Economy
(Top)
- Business sentiment slipped in the June quarter and, along with other indicators, points to growth around trend over the coming year
- Inflation was weak in the June quarter, apart from housing costs and petrol prices, and inflation pressures remain subdued
- Dairy prices fell further in July, pointing to lower terms of trade
- International data were generally positive, but risks around Greece and China were elevated early in the month
Read more here..
source:Treasury
NZ House sales (Top)
Auckland Buyers Spreading Into The Regions
• 7,426 dwellings sold in New Zealand in June 2015, up 29.2% on June 2014 and down 7.0% on May
• A national median price of $450,000, up $23,000 (5.4%) on June 2014 and down $10,000 (2.2%) on May
• A national median price excluding Auckland was steady at $340,00 compared to June 2014 reflecting a decline $9,000 compared to May
• A rise of 26% in Auckland’s median price, from $600,000 in June 2014 to $755,000 in June 2015
• Eight regions, including Auckland, with sales volume growth of more than 20% compared to June 2014
• A 106% rise in the number of sales over $1 million between June 2014 and June 2015 from 404 vs 835
REINZ, announced that there were 7,426 dwelling sales in June 2015, up 29.2% on June 2014 but down 7.0% compared to May.
The national median price was $450,000 for June, an increase of $23,000 or 5.4% compared to June 2014 and a decrease of $10,000 or 2.2% from May. Excluding the impact of the Auckland region, the national median price was steady at $340,000 compared to June 2014 and down $9,000 (2.6%) compared to May.
Real Estate Institute of New Zealand (REINZ) Chief Executive Colleen Milne says, “There is increasing evidence that Aucklanders are looking out of the region for properties, both as owner-occupiers and for investment properties. Regions such as Northland and Waikato/Bay of Plenty have recorded significant drops in the volume of properties for sale over the past six months, with Aucklanders increasingly being identified as a significant buying group in these regions. Further afield, there is increasing evidence that Aucklanders are making up a larger portion of total buyers.Prices are continuing to rise within Auckland and the inventory situation is very tight, with less than 10 weeks of stock available. Data shows that sales in the city in the ‘affordable’ price brackets are a lot quicker than the regional median of 29 days to sell. A reduction in the number of offshore buyers due to requirements to have a New Zealand bank account and an IRD number may be having some impact at the top end of the market, but for the bulk of the market the trends evident over the past 12 months show no signs of abating.”
source REINZ
NZ Retail Card Spend (Top)
Retail card sales for New Zealand have shown improved growth over June for the same period last year the only exceptions being apparel, accommodation and appliances. Fuel sales still recorded a negative growth as fuel prices continue to recover to more sustainable levels the trend is expected to be short lived. The accommodation figure can sometimes be misleading as people often pay online and via electronic transfer for these transactions one would expect visitor numbers to increase with the reduced value of the NZ dollar as well as still lower fuel prices.
Top Categories were takeaways, food retailing and other retail.
Source Marketview
NZ New Vehicle Sales (Top)
New Vehicle sales in New Zealand have continued the growth pattern over the previous 12 months, June’s performance was up on May 2015 but still a good indication that the national economy remains strong. In June 9, 021 new vehicles were sold. Which is up on May where 6, 843 vehicles were sold and well up on the 8,517 new vehicles sold in June 2014. Growth is once again strong but still trending down on the medium term. The 12 month moving average is showing slower growth.
Source MIA
Local Economy
Wanganui and Region House sales (Top)
Sales volumes rose 52% compared to June 2014, rising 142% in Levin, 76% in Palmerston North and 56% in Manawatu Country. Compared to May sales volumes rose 7%, with sales rising 26% in Palmerston North and 24% in Levin, although sales volumes fell across the rest of the region.
The median price across the region rose $10,150 (+5%) compared to May, with prices rising 12% in Wanganui and 3% in Palmerston North. Compared to June 2014 the median price rose $250 (+-0.1%), with prices rising 8% in Levin and Wanganui, and 7% in Palmerston North, but falling across the rest of the region.
The number of days to sell eased by two days compared to May, from 48 days to 50 days in June. Compared to June 2014 the number of days to sell improved by 14 days. Over the past 10 years the median number of days to sell across the Manawatu/Wanganui region in June has averaged 52 days.
REINZ Chief Executive, Colleen Milne noted that “First home buyers are active in the market below $300,000 with new properties to the market below $350,000 selling quickly. Listings remain tight, particularly in lower price brackets.”
The median price trend is now falling, although the volume trend is now rising. The days to sell trend is also now rising. The overall trend for the region is now steady.
Source MREINZ
Wanganui Card Spend(Top)
The retail card spend in Wanganui was once again positive. This was across all sectors measured with the exception of apparel which was flat and fuel attributable to lower prices in the market, this trend will reverse in coming months, appliances continue their recovery in June which is a positive trend when compared to recent months.
Top 3 sectors were
- Department Stores
- Takeaways
- Food Retailers
The bottom three sectors were
- Appliances
- Apparel (flat)
- Accommodation (not a always a good measure)
Card spend comparison by region month growth over previous year
Source Market View
Card spend comparison by region month growth over previous year
The results for individual councils across the region were again mixed this month, with strongest Ruapehu again at 17.7% increase far ahead of Palmerston North which recorded a growth of 4.5%(Driven by a high accommodation figure of 32% driven by student holidays) and Wanganui at 4.3% increase. Tararua District had the smallest improvement at just 0.3%. Wanganui at a 4.3% increase was higher than the National growth of 3.0%. Wanganui was the third to top card spend region after Ruapehu and Palmerston North when compared to the same period in 2014.
Source Market View
Wanganui New Vehicle Sales (Top)
In June new car sales were were once again down on the previous year with 59 Vehicles sold in June 2015 compared to 77 new vehicles sold in June 2014. Car sales continue to fluctuate . The overall trend however remains fairly flat tending down with a slight decline in the 12 month moving average again.
Source MIA
Building Consents – Wanganui (Top)
The dollar value for projects in June 2015 was higher than the corresponding month in 2014 (+$311,900.00).
For the month of June we received 66 applications this figure is the same as June 2014.
There were 5 new residential houses approved in June that had a combined estimated value of $1,860,000.00 which is again showing higher end complex projects taking place. This time of year also sees a dramatic increase in the number of wood burner applications with 28 being approved for the month..
Source Wanganui District Council
Tourism (Top)
May statistics are in and we’re still trending up. For the month of May 2015 compared to May 2014 we saw a 9.8% increase in total guest nights – a significant increase in the right direction. this was the 4th best growth after Timaru, Mackenzie and West Coast ahead of the traditional destinations of Rotorua and Queenstown.
Source-Stats NZ
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