Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Auckland economy starts 2014 on the right foot

29 January 2014

The Auckland economy continued to gain momentum through the final quarter of 2013 and enters 2014 on a solid footing. The housing market remains the key driver of growth, but the latest NZIER Quarterly Survey of Business Opinions (QSBO) suggests that the outlook for business investment and employment is also strengthening.

“Consumer confidence is riding high, buoyed by housing activity; and following a strong end of year performance, retailers will be hoping that consumers remain optimistic about the prospects for the economy”, said Geoff Cooper, Auckland Council’s chief economist.

Mr Cooper said the sluggish performance of the labour market to date has played a key role in households’ financial caution, but surveyed hiring intentions firmed in the final quarter of 2013.

The Real Estate Institute of New Zealand’s (REINZ) measure of the Auckland median house price moderated to $600,000 in December, following a strong monthly rise in November. Mr Cooper said recent house price movements have been influenced by the Reserve Bank’s LVR limits, which have weighed on sales and listings of lower priced houses.

House price growth has slowed since the introduction of the LVRs. “House price growth lags sales volumes, so the slowdown in activity at the bottom of the market would be expected to increasingly weigh on broader sales and price growth in 2014,” says Mr Cooper. “However rising net migration levels could counteract much of this effect”.

Net monthly migration flows averaged just under 1500 over the five months to November, compared to an average of 420 over the first six months of the year. “The jump in net migration reflects a slowdown in Australian employment growth. This weaker economic performance reflects the start of a downturn in the minerals investment boom which has been the key driver of Australian economic growth over the last decade,” says Mr Cooper. Net migration to Australia from Auckland for the year to November 2013 was 9,652 persons, down from 13,420 over the previous 12 month period.

Mr Cooper adds, “The relative strength of the domestic economy, together with the restrictions on accessing Australian unemployment benefits, could see the recent slowdown in net migration flows sustained if there is a sharp pick up in Australian unemployment.”

Residential building activity was 29 per cent higher in the September quarter of 2013, compared to the same quarter of 2012.

November was a stand-out month for dwelling consent approvals – 779 new dwelling consents were approved, the highest monthly figure since 2006. Consents in the three months to November were 11.5 per cent higher than the three months to August; while annual consents surpassed 6,000 for the first time since 2008. Of the 779 new building consents in November, 278 were for flats and apartments. There were 1156 consents issued for new apartment builds over the 12 months to November, again a figure not achieved since 2008.

“Residential building consent issuance tends to lead building activity by around six months; so the strong growth in consents over the second half of 2013 will translate into higher building activity over the first half of 2014, further stimulating employment and spending,” says Mr Cooper.

To view the latest Auckland Economic Quarterly or archive editions.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Syriza Win Greek Election: The Rumblings Of The Left

Binoy Kampmark: The left – and by this, the genuine, progressive, unmanagerial left – is getting noisy. The Greek elections are upon us, with the similar challenges being played out from 2012. There are fears of Grexit – a heavy breathing departure from the eurozone that will do everything to rattle the central currency mechanism that has been taking a battering...

Much of this has been triggered by the moral outrage and political response of the left grouping centred on Syriza of Greece. The movement has been said to have similarities to a new constellation of power in Spain, led by Podemos. Syriza, led by Alexis Tsipras, has promised to renegotiate the terms of Greece’s 240 billion euro international bailout arrangements. Both parties point out to the distance between elector and the elected, a creeping death of democratic accountability in favour of market propriety. More>>

 

Transport: Auckland Looks To Light Rail

The Board of Auckland Transport has called for an investigation into a light rail network, which could relieve traffic congestion on some of the region’s busiest roads. This stems from work in 2012 (the City Centre Future Access study) which responded to a government request to develop a robust and achievable solution for access to the CBD. More>>

ALSO:

RMA: Smith's Claims Don't Match Evidence - Greens

The Motu group’s research into the impacts of planning rules looked at the costs related to housing development but not the benefits of environmental protections and does not recommend significant changes to the RMA to reduce the cost of new house builds. More>>

ALSO:

Gordon Campbell: On The Similarities Between John Key And David Cameron

For years now, David Cameron has been the closest available thing to a mentor/analogue to our Prime Minister, such that Key watchers could be interested in an analysis of Cameron that appeared in the British press over the Christmas break. More>>

Gordon Campbell: On Ian Fletcher Resignation & GCSB’s New Role

It may well be that after being shoulder-tapped in Queensland for the GCSB job, three years of living in Wellington has been enough for Fletcher and his family, given that the pending review of the GCSB would have required an even longer commitment from him. Three years of Wellington’s weather is enough for anyone... More>>

ALSO:

Ian Apperley: $10m Or $100m For New Wellington Council IT System?

I feel a Tui Billboard coming on. I commented the other day that it looked like the Council’s Ninth big project was a potential $100 million plus... The Mayor has responded: “I am reassured by the Chief Executive and by Anthony Wilson that the proposed budget is in the region of $10 million.” More>>

ALSO:

Southern Ocean:
Navy Intercepts Illegal Fishing Vessels

Foreign Minister Murray McCully today put illegal fishing vessels operating in the Southern Ocean on notice and vowed to take action against their owners. “As part of a multi-agency operation, the HMNZS WELLINGTON has intercepted two vessels claiming to be flagged to Equatorial Guinea, fishing illegally in the Southern Ocean.” Mr McCully says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news