10 March 2016

Horowhenua poised for growth as construction and housing sales strengthen

Horowhenua is experiencing a significant increase in commercial and real estate property interest in the District.

This is shown in economic monitoring by Infometrics in its report for 2015, provided this week to Horowhenua District Council.

A highlight is the significant increase in both the number and the value of building consents issued in Horowhenua throughout the year.

Commercial building consents to the value of $16 million were issued in year to December 2015 - an increase of 60% from the previous year. By comparison the value of consents in New Zealand increased by 16% over the same period. Residential building consents were up 21.3% with 34 issued compared to 24 in 2014. Nationally, the number of residential consents issued increased by 9.8%.

House prices in the District rose 5.7% in 2015 after climbing 1.3% in 2014. The average current house value in Horowhenua is now at $211,086.

Property Brokers property consultant Murray Doreen says annual sales volume is now at its highest level in eight years.

“We haven’t seen this level of activity since 2008. Demand is starting to catch up with supply - the total number of houses on the market in Horowhenua has dropped by nearly half, from an average of 300 to 160.”

The interest in commercial property and housing in Horowhenua is being buoyed by the prospect of more streamlined State Highway connections between Levin and Wellington. District Mayor Brendan Duffy says this appeals to businesses looking for a strategic location, it appeals to people considering commuting to Wellington and Kapiti, as well as retirees looking for lifestyle improvements.

“Growth is coming to the Horowhenua,” he said.

“The challenge now is to ensure we supplement intensified residential growth with commercial and job growth. Whilst people are looking at the Horowhenua as an affordable place to relocate, we have to work hard to grow the District’s employment base. But I’m confident the Horowhenua Economic Development Board has the right strategies in place to enable this sort of activity.”

Overall, Horowhenua’s economy expanded at a moderate rate in 2015, with Infometrics’ provisional estimate of GDP showing growth of 2.5% over the year to December 2015.

Horowhenua District Council’s Economic Development Manager Shanon Grainger says these are very positive results and certainly encouraging signs for the next five to 10 years.

“Horowhenua is punching well-above its weight for districts and cities in the lower North Island, in terms of our GDP growth, our job output, and especially our housing and property activity which is really taking off,” he said.

“We’re actually at the top of the pile, and that’s comparing us to our neighbours to the north and the south. It’s fantastic and there’s more to come.”

The Infometrics report also showed that traffic flows in the District climbed 4.5%, pushed up by a combination of higher business activity, as well as lower petrol prices.

Against a backdrop of moderate economic growth, labour market conditions in Horowhenua improved. Not only did the number of Jobseeker Support recipients fall by 1.3%, but the District’s unemployment rate fell from an average of 10% in 2014 to 8.9% across 2015.

ENDS

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