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Home / Hawkes Bay Today

Growth keeps confidence high

By Patrick O'Sullivan
Hawkes Bay Today·
27 Aug, 2015 10:00 PM2 mins to read

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Master Builders Hawke's Bay vice-president Rob Fargher says the building industry is picking up. Photo / Warren Buckland

Master Builders Hawke's Bay vice-president Rob Fargher says the building industry is picking up. Photo / Warren Buckland

Hawke's Bay consumer confidence is the highest in the country as the local economy grows.

The ANZ Regional Trends report for the June quarter showed growth slowed to a 0.1 per cent increase but annual growth remained at 2.8 per cent.

Tourism has enjoyed a good shoulder to the season, with accommodation guest-night increases the highest in the country at 18.2 per cent.

House prices are up 7.1 per cent on last year and both house and farm sale volumes are up more than 40 per cent.

Hansen Bate lawyer James Drysdale said his office was a hive of conveyancing activity.

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"We are seeing a lot of out-of-town buyers for residential property and there is a general confidence among our rural clients, making moves they have been thinking about for some time," he said.

With Hawke's Bay's low exposure to the slump in dairy prices "people are confident and happy with our condition".

"Beef and sheep farmers and apple growers are happy with how their products have been going."

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Double-digit growth has builders smiling.

The value of commercial permits lifted 21.6 per cent on the same period last year and in the last three months new dwelling permits rose 16.6 per cent.

Master Builders Hawke's Bay vice-president Rob Fargher said it had been a five-year winter for the industry.

"All the builders are telling of a much-increased number of contacts moving forward to contract.

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"We believe it is driven by people who have sold their house to first-home buyers - everyone's moving up a notch."

New car registrations were up 14.8 per cent, ahead of the national figure of 3.6 per cent. Hawke's Bay businesses were the fourth most optimistic in the country, despite confidence dropping to 20 per cent, of those surveyed, from the previous quarter's 25.5 per cent.

Nationally, growth was 0.3 per cent for the quarter and 3.5 per cent year-on-year, heavily influenced by Auckland's 4.5 per cent year-on-year increase.

ANZ economist Peter Gardiner said the region was doing well, with growth across sectors.

"For the coming quarter, Hawke's Bay is better placed than some of the other rural economies with a greater dairy exposure," he said.

"The pipfruit sector and tourism are doing pretty well, that has to be a positive for the region,"

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