South Waikato economic profile continues upward trend

The most recent report from Infometrics shows that for the second year in a row, more than 100 jobs were introduced to the South Waikato labour market, after two years of decline prior.

This trend was echoed with an increase in economic gain by 0.9% to December 2016.

"Council will continue to support this positive trend through our business friendly and solutions focussed approach, changing perceptions of our district by showcasing the many business and lifestyle opportunities and working with training providers and industry leaders on successful programmes like the South Waikato Trade Training," said South Waikato Mayor Jenny Shattock.

The quarterly report also shows that traffic flows are up 6.3%, compared to 4.5% nationally, which is positive indication that the investment Council is committing to the Tokoroa CBD upgrade will have increased reach and capture to feed into continued economic growth for businesses in our town centre.

South Waikato house prices in December 2016 were 31% above their 2015 level. While this is a sign of positive growth for the district, it does create significant pressure on the housing market across the district. Council has identified residential growth planning in our Draft Annual Plan that will help address land and housing supply pressures in the mid- to long-term.

Over the last quarter, a further 8.6% increase in residential rental prices in the district has reached an eight year high in rent price inflation.

"This correlates with the local feedback we are getting from social service providers including TCOSS and the Overdale Centre in Putāruru regarding a major shortage of affordable rental accommodation," continued Mayor Shattock. "We have a significant opportunity to encourage people to both live and work in the district, but we need more housing stock.

"Our residential growth planning project will address this issue," continued Mayor Shattock.

Prices in the primary sector have improved over recent months, particularly for the forestry and dairy sectors which collectively account for over 25% of employment in the South Waikato. Data from AgriHQ showed log prices also rose to a record level in February. The total dairy payout (excluding dividends) in South Waikato looks set to be around $356m in the current season, based on Fonterra's current $6.00/kgms farmgate milk price forecast, up from $232m in the 2015/16 season.

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