SIT spends $2m-plus on student housing

23rd May 2013

Source: The Southland Times

Southern Institute of Technology students will begin moving into new lodgings this weekend, as the polytechnic reveals it has spent more than $2 million on student accommodation in the past five years.

Figures provided to The Southland Times show the polytechnic spent $2,170,668 buying four properties in the past five years, and another $15,370 upgrading the Grand Hotel, which also provides student accommodation.

SIT could not release the cost of projects still in progress, which include the development of properties in Spey St, a Yarrow St apartment extension and construction of Queenstown apartments.

SIT chief executive Penny Simmonds said the extension to the SIT apartment complex in Yarrow St was practically completed and would house another 42 students.

Students would start moving in this weekend, after the extension was given a final clean and furnished.

Ms Simmonds said it was vital for the polytechnic to provide accommodation options to attract students to Invercargill.

"It's really important for us to get accommodation that's central, particularly for our international students because many of them don't have transport."

There were also many first-year domestic students who did not want to start flatting on their own who used SIT accommodation, she said.

In total, SIT-owned accommodation would eventually house more than 200 students.

SIT's accommodation plans were being made in anticipation of its Grand Hotel lease ending in January, Ms Simmonds said.

It was also important to have room for foreign students, because SIT was on target to have about 550 equivalent fulltime foreign students this year and she expected this to increase to 1000 by 2015.

Properties bought by SIT in the past five years include the former Aachen Motel, now the SIT apartments, in Yarrow St, the Shiny Paua Motel and three villas in Spey St, as well as a house at 173 Tay St, a block away from the polytechnic.

The villas and Shiny Paua Motel would be demolished in stages and two 80-bed complexes would be built on the site, she said.

The first stage was out for tender at present, and Ms Simmonds expected construction to be completed in December for an intake of residents in 2014.

The Southland Times understands SIT has also been in informal discussions with the Invercargill Licensing Trust about the possibility of using the Kelvin Hotel as student accommodation if a new inner-city hotel were developed.

Vodafone prepares for 4G launch

23rd May 2013

Source: The Southland Times

Queenstown and Glenorchy will be the first towns in New Zealand to have Vodafone's 4G network coverage when Wakatipu coverage begins on June 20.

Vodafone director of external affairs Tom Chignall, who was in Queenstown to unveil network details yesterday, said quantum leaps in network use and capability meant exciting times were ahead for smartphone and mobile device users. "Over 50 per cent of Kiwis now use smartphones, which have taken over from PCs [personal computers]," he said.

That had contributed to data use quadrupling in the last two years.

The surge in data use was mostly video-driven, with video streaming and downloading accounting for 23 per cent of total data use, Mr Chignall said.

The 4G network would allow a seamless connection with cloud-based applications and stored data, high-definition video-conferencing and content streaming. It would allow a user to download an entire movie in minutes, Mr Chignall said.

As well as giving 4G network details, Mr Chignall revealed Wanaka's network capacity had been expanded.

More people moving to New Zealand

21st May 2013

Source: Stuff

More people are arriving to live in New Zealand long-term than leaving the country, with April seeing the biggest net migration gain in two years.

Statistics NZ said today that the net gain of 1600 in April reflected more people arriving from around the world and fewer New Zealanders leaving.

The seasonally adjusted net loss to Australia in April was 2000, the smallest net loss since late 2010.

There was a flood of migration to Australia after the Canterbury earthquakes, but that has been ebbing away.

The latest net loss to Australia was well down on the recent high of 3600 recorded in September 2011.

On an annual basis, New Zealand had a net gain of 4800 migrants in the April 2013 year, compared with a net loss of 4000 in the April 2012 year.

Housing market not flooded with overseas buyers - economist

21st May 2013

Source: TVNZ

An economist says that new figures reveal that the local housing market is not being flooded by overseas buyers.

BNZ Chief Economist Tony Alexander says that the latest BNZ and Real Estate Institute residential market survey figures show that offshore buyers account for only 8% of all residential house sales in New Zealand.

And of that percentage, 16% were from the United Kingdom, 15% from China, 14% from Australia, and 12% were from other Asia countries.

Of those home buyers, 3.6% said they are not planning to move to New Zealand.

He said the survey shows the idea that "cashed up foreign buyers" are putting pressure on the New Zealand housing market is not the reality.

Alexander said Kiwis are "looking for easy answers as to why the market's rising so rapidly".

"And of course if you go along to an auction, there's always high visibility of whoever the successful purchaser is, and it certainly seems many Chinese prefer buying through the auction method, rather than the more protracted one on one negotiations shall we say," he said.

"But the evidence doesn't actually back up the anecdotes with regards to the Chinese purchasing everything in Auckland.".

However, Alexander said while not significant now, in the next two to five years New Zealand will see more foreign buyers enter the market.

He said New Zealand's engagement with China in particular is going to grow.

Alexander said he believed "there will be an upward trend, especially out of China, because there's simply so much growth in wealth there".

China is New Zealand's second largest trading partner, and Prime Minister John Key has been encouraging the link between the two nations.

Key visited China earlier this year, where he re-signed a visa fast track scheme for Chinese business people travelling to New Zealand, and pushed for a boost in tourism numbers to New Zealand.

Alexander told ONE News: "The number of Chinese migrating to New Zealand is rising, their desire to get assets outside of China is rising, we'll see more foreign purchasing and because I believe New Zealand house prices for domestic reasons are going to go higher I do think we need a foreign house purchase policy."

Alexander is calling on the Government to adopt Australia's foreign ownership model, which dictates that anyone without permanent residency must apply to buy property and can only purchase 'off the plan' new builds or build their own houses.

This way they contribute to housing stock and do not put pressure on existing stock, Alexander said. They must also sell property if they move overseas again.

The Green Party has signalled Hong Kong's housing policy as being a successful model. Last year Hong Kong placed a 15% tax on properties bought by foreigners instantly cooling the market, which had become the most expensive in the world.

First home buyers accounted for 24% of house sales, while investors accounted for 19%.

He said those figures are consistent with the results in March.

House prices unlikely to fall fast

21st May 2013

Source: Stuff Business Day

Westpac chief economist Dominick Stephens says Auckland house prices are unlikely to be forced down in the short run by the Government's moves to speed up consent processes for new houses.

The Government has warned councils it will take control of the housing planning and consent processes from them if they don't act quickly enough to free up land for houses.

The move is aimed at speeding up supply particularly in Auckland where booming house prices have the Reserve Bank worried.

Speaking at a post-Budget function this morning, Stephens said the tight supply of houses had not been the only factor in house prices rising, and cited the example of Invercargill and Taranaki which had only small or negative population increases during the past five years yet still had significant increases in house prices in that period.

"As long as interest rates stay low and the tax system favours property, house prices will go up," he said.

"Stimulating a whole lot of building will not move house prices in the short run."

Under the housing accord the Government reached with the Auckland Council last week, the council will be required to boost the number of housing consents it issues from an average 5000 a year to 9000 this year through fast-tracking the consent process.

Economic Development Minister Steven Joyce, speaking at the same function, said that would rise to 13,000 next year and 17,000 the following year.

The most the council had ever passed in one year previously was 12,000 in 2003, he said.

"We've had a robust discussion with the Auckland Council because they're not consenting enough sections," he said.

"They need to get off their bums and do it."

Joyce said the Government would prefer not to have to intervene in the process but it wasn't prepared to let the housing supply shortage remain unchanged.

"People expect us to do something," he said.

The government is introducing new legislation to formalise the Housing Accord until further changes are made to the Resource Management Act.

"This is not going to mean you can just build a 15-story building in the middle of Mt Eden, there are a lot of limits on that, but it will see more mixed housing in some areas on the fringe," Joyce said.

Extra tax expected to bump surplus to $1b

15th May 2013

Source: Stuff Business Day

The Government looks set to jump back to a $1 billion surplus in the 2014-15 year on the back of an accelerating economy, according to a Westpac forecast.

Last year, the Government's books were expected to just squeak back into the black, but since then tax revenues have improved and a surplus now looks more assured.

A return to surplus equal to about 0.5 per cent of gross domestic product (GDP) would be a big turnaround from a deficit of more than 9 per cent in 2011.

"The Government's long-stated goal of returning to surplus by 2015 looks to be on track under current policies," Westpac said, with accounts due out tomorrow expected to show a stronger path than earlier forecasts.

The Government's Budget is expected to show a deficit of $6.9b for this fiscal year, which would be an improvement on the $7.3b shortfall expected last December. Westpac economists said the Government looked to be on track to return to a $1b surplus in 2014-15 "but with little wiggle room".

That meant there would be little new spending announced tomorrow, and it would be focused mainly in areas such as health and education.

The Government would return to the black after six years in the red without the "aggressive" spending cuts or tax rises brought in by many other countries after the global financial crisis hit in 2008.

Forecasts for economic growth were expected to be stronger than predicted last year as the economy picked up and the lift from the Canterbury rebuild kicked in. In December, the Treasury forecast growth in the year to June 2014 of 2.9 per cent.

Solid economic growth and a return to surplus in 2014-15 would help cap government debt at relatively low levels by international standards.

Bank of New Zealand economists said that was likely to be more than enough to keep credit rating agencies "at bay". "The ratings agencies should be well pleased and say so," BNZ economists said.

Government net debt is likely to peak about 29 per cent of GDP.

ANZ economists agreed that credit rating agencies and investors should give the Budget "the big thumbs up", with an expected return to surplus of about $400 million and net debt peaking at 29.5 per cent of GDP.

ANZ hoped to see some Budget initiatives such as skills development to help cope with plans to build 39,000 homes in Auckland, the Christchurch rebuild, as well as improving land supply and housing affordability.

The Government's better finances were based on good expansion in the private sector, and buoyant business and consumer confidence signalling stronger growth.

"Even drought threats have come and gone, meaning a bounce-back in agricultural production can be expected," BNZ said.

The expected 2014-15 surplus was better than the $66m surplus projected last year. But even at $1b, that only amounted to 0.5 per cent of GDP, "well within the margin of error for forecasts that far ahead", Westpac said

Westpac said tax revenue was running about 1 per cent ahead of forecasts in the nine months to March, with higher than expected incomes and stronger collection and enforcement by the Inland Revenue Department.

NZ dream lures top Brits

14th May 2013

Source: NZ Herald

Thousands of Britons have been lining up for a new life in New Zealand just as figures show a dramatic drop in the number of UK migrants coming Downunder in the past six years.

More than 2000 people, lured by the promise of higher-paid jobs in Australasia, including the Christchurch rebuild, attended the first of four migration and job exhibitions in Newcastle at the weekend - an event that will also head to London, Birmingham and Glasgow.

The Down Under Live exhibition is pushing the Christchurch rebuild as one of the "world's largest construction projects as the city looks to get back on its feet after the earthquake".

"... companies will require significant skilled and experienced staff across all trades and supporting professions," says the event's website.

The site also links to sectors considered to have a shortage of skills, either long- or short-term, in New Zealand including education, construction, finance, agriculture, health services and engineering.

Exhibitors at the show include Immigration NZ, recruiters, employers and migration specialists.

An Immigration NZ spokeswoman said the agency's role was to support employers by providing information for prospective skilled migrants, for example visa options and available settlement services.

Statistics New Zealand figures show the number of people moving here from the UK permanently or long-term has dropped by more than 5000 annually over the past six years.

The Immigration NZ spokeswoman said it was keen to boost the number of British migrants because they were "an easy fit" as the language and cultures were the same.

Immigration NZ regularly attended events - but the Christchurch rebuild was now a big focus, she said.

British job seekers at the event said they wanted to escape the weather and they would make more money Downunder for doing the same job.

One, Tim Holmes, said he would soon be travelling to Christchurch and had lined up an interview.

Former Londoners Matt and Liza Penaflorida said their move to Auckland in January with daughter Rosabelle, 3, was a "no brainer".

They had found NZ salaries were higher and tax lower, although the cost of living was more expensive.

"In terms of the lifestyle compared to London, well there isn't a comparison, really. Everything here is far less stressful in terms of living space and traffic and the sheer number and volume of people, but the cost of living is the downside to that.

"Everything here is more expensive. We're renting at the moment in Epsom ... We've got a two-bedroom apartment in London that we're renting out, and the rent here is substantially more than we're renting out our apartment in London for."

Job seekers to the two-day Newcastle show told local news site Tyne and Wear they were planning to move Downunder for better work-life balance and the lifestyle.

One woman said she had travelled Downunder before but there was more she wanted to do here.

One jobseeker said: "There are jobs over there doing the same thing for a lot more money. The top and bottom of it is to make a better life for myself."

QR Code Scanning Isn’t Just A Young Person’s Activity

13th May 2013

Source: Mike Andrew Consulting

QR code scanning – once the domain of the younger crowd – is becoming more evenly distributed across various age groups, according to [download page] data released by ScanBuy. The company, which says it processed a new high of 6.7 million scans via ScanLife in March, reveals that 57% of mobile barcode scanners were aged 35 and older in Q1, up from just 41% a year earlier. In particular, the 45-54 (18% share, from 12%) and 55 and older (14%, from 9%) groups represent rapidly growing proportions of scanners.

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During that yearlong period, the biggest drop came from the 25-34 crowd. In Q1 2013, that age bracket constituted 35% of mobile barcode scanners, but that’s now down to 25%.

While QR code scanners seem to be getting older on average (a trend first noted here), their gender split hasn’t changed that significantly. In Q1, 65% of scanners were male, which is slightly (but not drastically) down from 68% in Q1 2012. In terms of operating systems, Android remains the leader at 57% share, up from 53% a year earlier, while iOS’ share has dipped 2% points to 41%.

The study also shows that QR code scanning tends to be popular throughout the week, with 14% share of scans occurring each day from Tuesday through Friday during Q1. Scanning volume did go up slightly on the weekend (16% on Saturday; 15% on Sunday) before dipping on Monday (13% share). Scanning volume also tended to rise after lunchtime and see sustained levels of activity until the primetime hours.

Other Findings:

• The most scanned QR code campaigns in Q1 connected users to product information, social media, and mobile commerce.
• The top industries, in terms of scanning activity, were retail, food and beverage, and wireless.

Property surging outside Auckland

10th May 2013

Source: The Southland Times

Property prices continue to firm outside the rampant Auckland and Christchurch markets, even as the Reserve Bank takes steps to dampen it down.

Figures from valuation service QV show national house values are up 7.1 per cent on a year ago and up 4 per cent in the three months to April.

QV operations manager Kerry Stewart said growth outside the country's two areas of housing shortage was now becoming quite evident.

"There's generally a more positive feeling about New Zealand's economy and where it's going, more overseas investment has also drilled down into the residential markets," he said.

All the main cities improved on the previous month and year, but Auckland and Christchurch values rose the most, up 12 per cent and 9.4 per cent year on year respectively. However, Infometrics economist Matt Nolan noted provincial areas were still waiting for the upturn.

House values were still 20 per cent or more below their market peak in about half the country's 67 local territorial authorities.

Meanwhile, the Bankers Association has criticised Reserve Bank proposals this week to curb the housing market by tightening the rules around high-risk mortgages.

Chief executive Kirk Hope said house prices were not being spurred along by looser credit conditions as the Reserve Bank claimed.

Credit growth was running at about 3 per cent.

"This isn't a credit-driven price issue, it's a supply-driven price issue," he said.

He also said the possibility of caps on high "loan-to-value ratio" mortgages was a model that had not worked overseas.

"What people will do is borrow from sources that the Reserve Bank don't regulate, unsecured."

Hope said banks would be relatively unaffected by any new measures as they had already been forced to build up their capital buffers.

But he questioned whether it was fair to restrict credit to buyers outside Auckland and Christchurch.

"If you're in Invercargill, I bet you don't feel like you're in a bubble."

Those affected would not just be first-home buyers, but also entrepreneurs wanting to leverage their homes to start a business, and others with good credit records but low equity, such as divorcees or young professionals with good incomes.

Banks did not approve 90 per cent loans lightly, he said.

"It's individualised and highly dependent on people's circumstances and serviceability."

BANK STEPS 'UNLIKELY TO AFFECT AUCKLAND'

Property investors say moves by the Reserve Bank to control low deposit mortgages may not make much difference in the country's strongest market, Auckland.

The moves, flagged by the bank on Wednesday, could mean people wanting to borrow more than 80 per cent of a property's value would face steeper fees or be turned down until they had a bigger deposit.

But Auckland Property Investors Association president David Whitburn said the Reserve Bank was fighting globalisation in Auckland, where prices were highest.

"The market is too big to be hit on just monetary policy alone."

It would certainly not stop migration to Auckland, where many overseas buyers were cashed up or had generally saved up more capital, and did not need high loan-to-value loans.

"Auckland doesn't compete so much with other New Zealand cities for migrants, but against global cities like Sydney, Melbourne, Singapore, Hong Kong and Shanghai," he said.

In foreigners' eyes, Auckland prices were expensive compared with US and UK cities but cheap compared with many Chinese and Asian cities, and it did not charge stamp duty on residents.

"Auckland is increasingly a global city . . . it's the third-most liveable city in the world, it's got a temperate climate, it's got a lot of jobs, it's not deemed to be a significant earthquake risk . . . so that's where overseas people put their money."

However, Whitburn did expect the move would dampen Auckland prices a little, mostly as a result of punishing first-home owners and less wealthy property investors.

"I do have some reservations on how this impacts on first-home buyers," he said.

"In Auckland the real issue is . . . years of poor council and central government policy both, which has meant it's not economical to build affordable homes."

Meanwhile, Rodney Dickens, managing director at research firm Strategic Risk Analysis, has blamed low interest rates and Reserve Bank policy for the growing gap between rents and property prices.

Rents rose about 6.3 per cent nationally between the second half of 2010 and the first half of 2013, reflecting the difficulty landlords had in raising rents when wage growth was low.

"It would appear that a side effect of the Reserve Bank keeping inflation low is that expectations and behaviour have changed and resulted in rental inflation remaining low."

Fewer jobless in Southland

10th May 2013

Source: The Southland Times

Southland has the lowest unemployment rate in New Zealand and the economy remains the strongest in the country, economists say.

The Westpac seasonally adjusted unemployment rate dropped from 4 per cent to 3.8 per cent in the region.

Westpac chief economist Dominick Stephens said the rate was calculated using Statistics NZ's March 2013 quarter Household Labour Force Survey, published yesterday. Although the Southland sample was small, the region had long been one of the strongest in the country economically and this quarter was no exception, he said.

Despite uncertainty surrounding the Tiwai Point aluminium smelter, the region had nothing travelling against it, he said.

The region had not been particularly affected by the North Island drought, and strong fundamentals and low wage rates made it easier for firms to hire people.

More dairy conversions also had a positive impact on results, he said.

The downwards trend was in line with the New Zealand economy, which was picking up, he said.

"There is a gathering sense of confidence around the economy and Southland is no exception," he said.

A low unemployment rate was a perennial feature of the Southland economy, he said.

Southland Chamber of Commerce chief executive Richard Hay said it was encouraging to see the unemployment rate drop. "Statistically this quarter is on par with the March 2011 rate, which shows a trend to improvement," he said.

Venture Southland enterprise services manager Alistair Adam said Southland had good export drivers, which was why the economy was doing well in the region, but a high work-force participation rate could create challenges for new businesses trying to establish.

"There may not be a labour force to staff further development in the region and like the dairy industry, may have to import labour," he said.

Nationally, unemployment dropped to 6.2 per cent in the March quarter, from 6.8 per cent in the December quarter.

Official unemployment figures have bounced around sharply in recent quarters and economists have been sceptical about their reliability as an indicator.

While unemployment is decreasing, it remains relatively high and, with extremely low inflation and wage growth, the Reserve Bank is expected to keep official interest rates on hold at 2.5 per cent until March.

Prime Minister John Key said although encouraging, the Household Labour Force Survey moved around quite a lot, and should be treated with a degree of caution.

"But, overall, it's a great result. It shows more New Zealanders are in work, it shows the economy is recovering and the Government's policies are working."

Buying your first home just got harder

9th May 2013

Source: Stuff Business Day

They can expect to face higher interest rates if they want to borrow more than about 80 per cent of a home's value, under new moves revealed yesterday. That could push up the interest rate on a floating mortgage from about 5.85 per cent to about 6 per cent.

One banking expert has called the moves a "slap in the face" for first-time buyers. Some property investors and small businesses may also find it harder to get a big loan from a bank.

The hot housing market, particularly in Auckland and Christchurch, has led the Reserve Bank to force the big four banks to permanently increase their buffers against high "loan to value ratio", or LVR, lending - when homeowners borrow more than 80 per cent of a home's value.

Essentially, the banks are being made to set aside more of their own money in case the housing market slumps.

Massey University head of banking studies David Tripe said the changes were a slap in the face for first-home buyers and could push up interest rates by 20 to 30 basis points, taking a first home further out of reach.

The risk with trying to limit high LVR lending was that people would then look for second or even third mortgages from "high-risk" lenders such as finance companies, at even higher loan rates, as borrowers did in the 1970s, he said.

ANZ chief economist Cameron Bagrie said the move by the Reserve Bank was actually "pretty light-handed", but should be seen as a warning shot, putting banks and borrowers on notice that it could take further action to control lending.

Federation of Family Budgeting Services chief executive Raewyn Fox said first homes were increasingly unattainable, and raising interest rates and deposit levels would make it harder for people to get on the property ladder.

However, making it more difficult to get a low-equity loan was not necessarily a bad thing, she said. The advice service often saw people who had borrowed between 90 and 95 per cent on their homes getting into financial strife, with mortgagee sales increasing.

"If it's too easy to get into a home without saving a big deposit, then it causes problems down the line; people haven't established a plan of saving, so if something happens they've got no backup."

Thousands of people in their 40s and 50s still had not managed to get into their own home, she said. "They're saying we're just going to rent, and we think that's really going to hit them when they get to retirement age and they have to pay rent on a retirement income.

"It's going to completely change society - it hasn't hit us yet, but it will."

Harcourts Wellington city managing director Marty Scott said the rest of the country should not be penalised for problems in Auckland and Christchurch.

"Maybe they should restrict their loaning practices to the markets that are causing the problem. We are not the drivers of it."

Prices are up about 8 per cent nationally and 13.5 per cent in Auckland in the past year. But in Wellington and many regional areas they have risen by only about 2 per cent.

Homes in the low-to-medium-price bracket, where most first-home buyers were looking, were currently the most sought after.

A $450,000 to $500,000 three-bedroom bungalow in a Wellington suburb would typically attract about seven buyers.

'IF IT WAS A 20 PER CENT DEPOSIT . . . WE WOULDN'T BE HERE'

It's been a stressful road to the Kiwi dream, but Upper Hutt couple Ben and Michelle Martin have finally achieved it.

After two years of scrimping, saving and searching, the newlyweds have just signed the purchase agreement on their first home.

But it wasn't easy, and Mr Martin says there is no way they would have been able to do it if they had to stump up a 20 per cent deposit.

"If it was a 20 per cent deposit, that's over 60 grand . . . we wouldn't be here, that's for sure. We'd be renting forever."

The self-employed panelbeater, 32, and Plunket nurse, 29, were married in November, and baby Hollie joined them two weeks ago.

At first, they thought they would be eligible for the first-home deposit subsidy from KiwiSaver, of between $3000 and $5000 each.

But the house-price cap for their area was $300,000, and anything around that price was a "dump", Mr Martin said.

The pair decided to forfeit the subsidy, withdrawing $11,000 from their respective KiwiSaver funds.

In the end, they raised a deposit of $33,000 for the $350,000 house they wanted. The bank had agreed to give them a 90 per cent loan, and charged them a further $4500 in "safety insurance" when their deposit fell just short.

After months of attending open homes, they settled on their house.

While Mr Martin reckons they paid more than it was worth, they were happy to get the property.

They have been there two months, and say the stress was worth it. "We're absolutely loving it. It's a really good feeling going home, I can tell ya."

THE NUMBERS

Average asking price of a house in Wellington: $436,000

Average annual household income in Wellington: $89,000

20 per cent deposit: $87,000

A couple, or single person, on an income of $89,000 would need to save $1640 a week for a year to fund the deposit.

Or they could save $303 a week for five years, without allowing for inflation.

Calculations from Sorted.co.nz. It advises that the first step in saving for a deposit is to set a goal. Cut down on non-essentials, and work out a household budget.

The bigger your deposit, the less interest you'll pay.

Regions team up to promote South Island to Asia

7th May 2013

Source: The Southland Times

Venture Southland will collaborate with Christchurch International Airport to help market the South Island to Asian tourists.

Venture Southland tourism and events group manager Rex Capil told a Venture Southland joint committee yesterday it had committed to the memorandum of understanding - The Marketing of Destination South Island, which had been signed by 11 other regional tourism organisations in the South Island.

The objectives of the alliance were to maximise the marketing opportunities and economic benefit to the South Island, including Invercargill and Southland.

The initiative would focus on long haul international markets, in particular from Asia, including China, Japan and India to increase market coverage, he said.

Christchurch was seen as the gateway to South Island tourism and the initiative would investigate opportunities for achieving cost efficiencies by sharing responsibilities and services in marketing activities, he said.

As part of the collaborative approach Venture would contribute $5000, which would go towards employing someone to market the South Island in China.

The Venture Southland funds would come from the reallocation of the Joint Venture market promotion budget, he said.

The South Island was marketed internationally as a series of individual regions with insufficient focus on itinerary planning and development. The investment would recognise and utilise the strengths of each region for the greater good of all South Island regional tourism operators (RTOs).

Venture Southland chief executive Paul Casson said only two per cent of Chinese tourists in New Zealand flew directly to the South Island.

Auckland Airport had a partnership with Queenstown Airport that worked well, but Christchurch Airport would promote all destinations in the South Island.

"This will give our region traction in markets we would not otherwise see . . . it's a great opportunity to increase numbers," Mr Capil said.

During the past 12 months the project had been driven and developed by Christchurch International Airport after the number of international bed nights fell in the South Island in relation to North Island beds, the decline in long haul European markets and the increase of visitors from China.

House asking prices hit new record high

1st May 2013

Source: Stuff Business Day

The stock of houses on the market shrank to near-record lows in April, encouraging sellers to ask more for their properties.

According to figures from industry website Realestate.co.nz, asking prices hit a record average of $447,277 in April, up 6 per cent on the same time last year.

Asking-prices are an indicator of confidence in the market, but are often higher than the final price paid.

With asking prices particularly strong in Auckland and the Central Lakes/Otago regions, they were set to remain high throughout the winter, said the website's marketing manager, Paul McKenzie.

The hike in Central Lakes/Otago prices were driven by a spurt of high-value property sales in Queenstown, he said.

"Quite a number of houses in the Wakatipu basin came in over $1 million mark," McKenzie said.

Adding to the pressure was a 21 per cent fall in new listings in March and a 20 per cent fall in inventory, compared to a year ago.

"Across the board, in the last month, it's tightened," he said.

Inventory, the estimated length of time it would take to sell the stock of houses on the market, fell slightly to 26.8 weeks, but that was close to its all-time low of 26.2 weeks, he said.

Nationally, inventory is now well down from the long-term average of 38.5 weeks.

A flush of new listings in Auckland, up 9.3 per cent on the previous April, were quickly counteracted by strong demand from buyers, which pushed the city's inventory down 35 per cent on a year ago.

Auckland's inventory is now 14 weeks, just above the record-low of 13.9 weeks and its long-term average of 30 weeks.

New lows in inventory were hit in Canterbury and the central North Island, and only two regions, Southland and Taranaki, saw an increase in stock.

New listings overall were down 1.5 per cent, but the trend was patchy. Ten of the 19 regions covered recorded a fall, most significantly in Northland, which fell 47 per cent..

"About half the country saw an increase in listings compared to the previous year, and the other half saw a decrease," McKenzie said, adding that the reluctance to list was creating an ever-tightening market.

"As demand is staying high, there simply aren't enough new properties on the market to slow things down," , he said.

Average asking prices around the country:

Auckland $612,167, up 8 per cent on last April, a new record

Wellington $435,791, up 1 per cent on last year

Canterbury $411,399, up 8 per cent

Waikato $364,563, up 1.7 per cent

Central Lakes/Otago $679,987, up 14.1 and nearly $40,000 from the previous high in February

Shares and property lift KiwiSaver

1st May 2013

Source: NZ Herald

KiwiSaver funds with higher exposures to growth assets such as shares and property have performed the strongest in the past year, according to figures from Morningstar.

Morningstar yesterday released its KiwiSaver Performance Survey to March 31, 2013, designed to give investors an idea of how well providers are performing.

Growth and aggressive options generally outperformed more conservative funds in the year, posting average returns of 13.4 per cent and 12.7 per cent respectively.

Chris Douglas, Morningstar's co-head of fund research, said KiwiSaver funds with greater investments in New Zealand shares were among the best performers.

"Sharemarkets have had a very strong run since mid-2012, resulting in the balanced, growth, and aggressive categories all posting double-digit returns," he said.

Milford's Active Growth fund was the strongest overall performer of the year, with a 26.4 per cent return.

Milford's greater allocation to shares also helped its conservative and balanced funds dominate their categories.

Aon KiwiSaver Russell, AMP, ANZ, and SIL also deserved mention for consistently strong results across a number of risk profiles, Morningstar said.

Over a five-year period, moderate funds - those with more money in cash and bonds - have the highest average return at 6.1 per cent a year. Conservative funds have performed second best over that period, with an average return of 5.9 per cent a year.

Douglas said the first quarter of 2013 was a busy time for KiwiSaver providers, with a number electing to close their schemes to new investors.

"Importantly, you don't need to rush any decision, as your money will continue to be managed in the same manner for some months to come while a scheme is either merged into another one or a final decision is made about its future," he said.

AMP Wealth (formerly AXA), National Bank, and ASB's FirstChoice KiwiSaver have all closed to new investors.

Douglas said individuals' savings pools were growing, meaning it was important that people made the right decision about which risk profile to choose.

"Now could be a very good time to reassess whether the risk profile you're invested in is the most appropriate given your age, time to retirement, and risk capacity."

There is now $14.48 billion invested in KiwiSaver, an increase of $825 million since three monthsago.

ANZ-owned One Path is the largest provider with $3.64 billion, ahead of ASB with $3.05 billion.

The top default provider both in 2012 and since 2008 was ANZ, its OnePath Conservative fund offering investors a return of 8.5 per cent a year and 6.3 per cent a year respectively.

South Island television now fully digital

29th April 2013

Source: The Southland Times

Most Canterbury households switched to digital television yesterday, but 5 per cent are seeing static.

Everyone who wants to watch television in the South Island must now have Freeview, Sky, Igloo or Vodafone cable TV (Christchurch only) because analogue television was switched off at 2am yesterday.

Going Digital national manager Greg Harford said 95 per cent of South Island switched over, with the majority of those not switching over doing so out of choice.

"We had a few people calling the call centre for technical advice but everyone was aware of what was going on."

He said people did not need a new television to go digital, however a lot had used it as an opportunity to upgrade their televisions.

A Smiths City spokesman said there had been in an increase in television sales because of the digital switchover.

Mortgagee sales hit four-year low

26th April 2013

Source: Stuff Business Day

Mortgagee sales have hit a four-year low but a regional breakdown shows the good news isn't nationwide.

Overall there were 461 mortgagee sales across the country in the three months to December 31, a drop of 11 per cent compared with the previous quarter and 24 per cent lower than the same period a year ago.

There were 2106 mortgagee sales last year, the lowest total since 2008.

While the headline gains were notable, on a regional level the data confirmed the impression that the recovery is far from nationwide.

Auckland and its white-hot property market saw the biggest fall in the number of mortgagee sales, down 36 compared with the previous period, or 26 per cent.

Wellington recorded a reduction of 15 mortgagee sales in the period, a decline of 31 per cent.

Marlborough, Taranaki, Waikato, Canterbury, Nelson and Bay of Plenty all had quarter-on-quarter increases.

Terralink managing director Mike Donald said a split was emerging between Auckland and the rest of country.

The city accounted for 41 per cent of forced sales in 2007, but now represents only about 20 per cent of forced sales.

The percentage of forced sales in the rest of the country increased to 78.1 per cent in the last quarter from 58.5 per cent in 2007.

"The supply and demand situation in Auckland means any financially distressed homeowners there have a much better chance of selling their home quickly, and at a good price," Donald said.

"Consequently, they are much less likely to face a forced sale by the lender."

The figures showed buy-to-rent property investors (those with two to five properties) accounted for the biggest slice of the forced sales at 31 per cent in the December quarter, an increase of 6 per cent on the previous period. 

Council moves to provide healthier homes

26th April 2013

Source: The Southland Times

Poor housing conditions in Invercargill are connected with poor health, the organiser of a new eco advice service in the city says.

Invercargill City Council building consents team leader and Eco Design adviser Keiron O'Connell said the Eco Design Adviser (EDA) service would provide Invercargill and Bluff residents and home owners with free independent advice and information on how to make homes healthier, more sustainable and save energy.

EDA is a nationwide service, instigated by the Building Research Association of New Zealand, and implemented by six other New Zealand councils.

National research showed 80 per cent of houses in the country were badly insulated or not insulated and 45 per cent of homes had signs of visible mould that was bad for health, he said.

Many New Zealand homes were also not up to World Health Organisation standards, which recommend the temperature of a room to be between 19 and 21 degrees Celsius.

The national average was between 13.5C and 14.5C, he said.

He set up the service at the city council after seeing a dire need in Invercargill for assistance, he said.

Having lived in the United Kingdom for 20 years and working in architecture, he noticed homes in the UK were extremely energy efficient with strong policies and regulations in the area of sustainability.

When he returned home to Invercargill, he found it hard to find a house that was up to a good standard.

"Some homes in Invercargill would not pass European regulations 20 years ago," he said.

He believed the mentality for many people in the city was to bring a dwelling up to the minimum building code standard.

Many plans submitted to the city council with consent applications only met the minimum standard, he said.

Invercargill had a large number of older houses and many had not reached their full potential.

It was important to ensure that when upgraded, the owners had access to the latest information to enable them to make sustainable, cost-effective improvements, he said.

"I want to make a change. I want to help people lower power bills and make homes in the city more energy efficient and healthier at the same time."