Lockdown impact
From booming real estate to fewer snack sales at the corner dairy, Coromandel retailers are reporting there are winners and losers when it comes to the financial impact of lockdowns. HC Post editor ALISON SMITH and reporter REBECCA MAUGER spoke to retaile
Economists confirmed last week’s Covid-19 lockdown in Auckland will have flow-on effects likely felt around the country, including the Coromandel.
Based on cost estimates developed by ASB during the previous lockdown, having Auckland at alert level 3 and the rest of the country at alert level 2 costs the economy about $440 million a week — or 0.15 per cent of GDP.
Thames-coromandel District Council uses a company called Infometrics, which provides information about the local economy to inform financial investment and planning decisions based on what is known about population and demographics.
The latest quarterly data to the end of December 2020 acknowledges Aucklanders are an important economic contributor and reflects the impact Covid-19 is having on the economy.
The region has a soaring house market, strong domestic tourism, strong consumer spending and a small increase in population growth.
Dawn Thompson has a new business in Waihi, as owner of the Doggy Daycare and grooming business 4 Paws, in School Lane.
She has clients who’ll travel from Auckland to bring their pets to board or get a grooming and says the recent Auckland lockdown had an impact on her business.
“Many of the clients don’t want to go away and are not sure with the lockdowns, they are elderly and don’t want to leave the house.”
The lockdown also prevented her from travelling to them for pet grooming, which she does for clients who can’t get to Waihi.
Last year’s lockdown saw a drop in revenue of about 15-20 per cent for Barron’s Pharmacy, says owner Vijay Pillai.
Recent changes in alert levels have brought on a definite dive in retail revenue once again for the Waihi pharmacy.
‘‘People are nervous perhaps, they’re aware that Aucklanders may have come into Waihi and other small towns — those who sneaked through just before the alert level changes — this may have stopped our locals coming out as much.”
Vivien Gerrand of Arkwrights Antiques says the general view of Paeroa’s retailers is ‘‘just about everyone says they have done better than ever before”.
‘‘Covid has very good to us, my shop has never done as well as this. With all the woes of tourism, we are doing just fine . . . ” But she’s lucky, she says, as antiques don’t expire and neither does she rely on product coming from overseas.
Waihi Beach’s Daisy Chain owner Victoria Anderson says it’s been the ‘‘best year ever” for her homeware and clothing business.
‘‘I have all the local people who have a little bit of spare cash and they’re all here, no one is away travelling and they love my shop and they support me and I just think they’re wonderful customers.”
Victoria saw last year’s level 4 lockdown as a great opportunity.
‘‘I thought ‘I’ll turn this around, what a great opportunity for retailers to have a little break’ because you never ever get a break in retail.”
This time around Victoria is still unfazed by yo-yoing alert levels as she has local support and people come from ‘‘all over” — she doesn’t just rely on Auckland shoppers.
‘‘But I am worried about the economy, we have got to learn to live with this virus. We can’t keep shutting down every time.”
Mitesh Patel, owner of the Tairua Superette, says despite a sunny weekend of good swell there was still at
least 20 fewer customers stopping for munchies in the evening or bread and milk in the morning.
“We are effected with the closures, it was much quieter, not like a normal trade at all. It’s not like a winter slow, but slow.”
When regional borders are open, the Coromandel has benefited from Aucklanders making the most of it.
Tourism expenditure increased 1.5 per cent in Thames-coromandel the latest quarter, compared with the 15.6 per cent decrease nationally.
Some $229m was spent by tourists, up $3m from the same time last year.
“Because Kiwis were opting for more drive-based travel rather than flying, and our close proximity to Auckland, we saw our domestic tourism numbers rise 1.5 per cent per annum,” says Laurna White, TCDC Communications and Economic Development Group manager.
The data shows house price growth with the average current house value in the district up 13.2 per cent this quarter compared with the same time last year.
The average house value in Thames-coromandel was $904,897, compared with $806,151 in New Zealand.
House sales increased 13.4 per cent for the year to December 2020, with
1406 homes sold and record high prices fetched in townships including Whangamata and Waihi Beach.
While real estate agents on the east Coromandel say there’s “still good heat” in the market, the recent lockdown has been noted for the quieter streets and open homes.
“Some people got out of Auckland in a hurry but the town has been relatively quiet compared to others due to the Auckland lockdown,” says Murray Cleland, principal of Whangamata Real Estate.
He said the settlements of Onemana and Whiritoa had benefited from the high prices and market interest in Whangamata.
Gordon Turner, owner of First National Paradise Coast, said Covid is having it’s “little dibble” on the market.
“We had a very poor turnout to open homes the last two weekends. People go ‘oh it’s too hard, we won’t be able to get to that bach’ — some of that starts to play into their thinking — whereas they were all fired up before.”
Thames-coromandel mayor Sandra Goudie says while it’s a little easier for us in the Coromandel to look over the fence and think how lucky we are that we’re not in the same position, only one transaction or meeting with someone that doesn’t get reported could turn into the same situation here.
“Which is why we also continue to stress the importance of contact tracing and staying home if you feel unwell, and following Ministry of Health guidance.”