Will the mar­ket boom where you are?

Matamata Chronicle - - Property - HAMISH MCNI­COL

The coun­try’s econ­omy is com­ing in hot on high pop­u­la­tion growth but some re­gions are tipped to get hot­ter still over the next decade, and it is not just in and around Auck­land.

In fact Cen­tral Otago, as well as parts of Whangarei, New Ply­mouth and Palmer­ston North, are all part of the coun­try’s re­gional ‘‘hotspot’’ pic­ture, a re­port from eco­nom­ics firm In­fo­met­rics has found.

The re­port looked to pin­point key growth ar­eas for the coun­try over the next five to 10 years.

In­fo­met­rics chief fore­caster Gareth Kier­nan said the en­tire coun­try felt like an eco­nomic ‘‘hotspot’’ this year as the pop­u­la­tion grew at its fastest rate since the mid-1970s.

Auck­land’s hous­ing mar­ket boom was an ob­vi­ous con­se­quence of this, and had clearly had an im­pact on the ‘‘halo’’ re­gions around it.

But a grow­ing pop­u­la­tion had wider im­pli­ca­tions than just adding heat to the prop­erty mar­ket, Kier­nan said.

‘‘One of the most sig­nif­i­cant ef­fects of an in­creas­ing pop­u­la­tion is the rel­a­tive ease it pro­vides busi­nesses for in­creas­ing their rev­enue or sales vol­umes.

‘‘Growth ar­eas can sus­tain more busi­nesses and big­ger firms, even if the av­er­age spend­ing by each in­di­vid­ual is not in­creas­ing.’’

The re­port pin­pointed four ur­ban hotspots in Auck­land, North Hamil­ton, Pa­pamoa in the Bay of Plenty, cen­tral Welling­ton and two ar­eas in Christchurch.

But it also looked at a few pro­vin­cial re­gions set for growth, which in­cluded Cen­tral Otago, Mars­den Point and Ruakaka in Whangarei, Bell Block in New Ply­mouth and Kelvin Grove in Palmer­ston North.

Cen­tral Otago, and par­tic­u­larly Queen­stown, Wanaka, and Cromwell, had had eco­nomic ac­tiv­ity rekin­dled by the mas­sive growth in the coun­try’s tourism in­dus­try.

Kier­nan said these hotspots were cho­sen be­cause they were ar­eas which would face rapid, rather than just run-of-the-mill, pop­u­la­tion growth over the next decade.

Hob­sonville in Auck­land, for in­stance, was set to record the coun­try’s fastest pop­u­la­tion growth, in­creas­ing by more than 250 per cent by 2023.

‘‘Growth of this mag­ni­tude doesn’t just re­quire new houses to be built, but also needs to be ac­com­pa­nied by ap­pro­pri­ate phys­i­cal and so­cial in­fras­truc- ture, the in­te­gra­tion of busi­ness ar­eas and em­ploy­ment op­por­tu­ni­ties, and the pro­vi­sion of new re­tail ser­vice cen­tres.’’

MICHAEL BRADLEY/FAIR­FAX NZ

Cen­tral Auck­land’s pop­u­la­tion growth is run­ning well ahead of pro­jec­tions.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.