Queenstown voted one of world's top destinations

23rd May 2013

Source: Voxy.co.nz 

Queenstown has been named one of the world’s Top 25 Travellers’ Choice Destinations by TripAdvisor, the world’s largest online travel community.

As well as rising to 25th place on the international list, the four season lake and alpine resort was also named best destination in New Zealand and second best in the South Pacific.

The Travellers’ Choice Destinations awards honour top travel spots worldwide based on millions of valuable reviews and opinions from TripAdvisor travellers. Award winners were determined based on the popularity of destinations, taking into account travellers’ favourites and most highly rated places.

Destination Queenstown CEO Graham Budd was delighted with award and said it was a fantastic international achievement for the resort.

"We’re aware of the power of Trip Advisor in influencing the travelling community, so the news that Queenstown has been ranked by millions of travellers worldwide alongside cities like Paris, New York and London is a testament to the quality of our operators and the exceptional travel experience they deliver."

The cosmopolitan resort town, famous for its spectacular scenery and huge range of world-class experiences, has previously earned international accolades from other travel authorities such as Lonely Planet, Conde Naste and National Geographic.

Latest articles Advertise Contact Help Make NBR my homepage Print archive Subscribe Hot Topics: Solid Energy | Unitary plan | Budget Queenstown industrial property in recovery

23rd May 2013

Source: National Business Review

Queenstown’s industrial market enjoyed increased in activity in recent months, with leasing of several long-vacant premises.

There have also been more buoyant land sales, according to Colliers in its annual review of the Queenstown market.

Vacant land sales predominantly in the Shotover Park industrial area have historically shown growth, with land values rising from $150-$250/m2 in 2002 and peaking in 2006-07 at $800-$1000/m2.

Recent land sales indicate values generally ranging from $350-$550/m2.

“We understand there have been some pre-sales within the next stage of Shotover Park for sites ranging in size from 700m2 to 1200m2 at sales levels from $400-$500/m2.

“However, the progress and timing of this extension to the industrial area is also uncertain due to consent and planning issues.”

Industrial rents are now typically in the range of $95/m2 to $140/m2 for good-quality warehouse space and $120/m2 to $150/m2 for offices, with some good profile locations achieving retail/ showroom rentals of up to $250/m2.

Industrial yields are stable and are now at circa 7% to 8.5%, depending on the tenant, lease terms, size, quality and location.

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.

Queenstown world-class destination

22nd May 2013

Source: Otago Daily Times

Queenstown is the world's 25th best destination, according to TripAdvisor.

The global travel website released its latest survey results yesterday. Queenstown was ranked first in New Zealand, second in the South Pacific and 25th worldwide.

It was ''fantastic'' a New Zealand destination ranked so highly, Tourism New Zealand chief executive Kevin Bowler said.

''To receive this sort of third-party endorsement via the TripAdvisor community is incredibly valuable.

''Queenstown itself is an absolute jewel made even more popular by it providing the backdrop to many scenes in The Lord of the Rings trilogy and now The Hobbit,'' Mr Bowler said.

The world's best destination was Paris, ahead of New York (2), London (3), Rome (4) and Barcelona (5).

Milford Sound was ranked fifth in New Zealand, Wanaka seventh and Dunedin ninth.

In the South Pacific, Milford Sound was 14th, Wanaka 19th and Dunedin 21st.

Ranking were based on reviews and opinions from TripAdvisor travellers.

More than 400 destinations were considered.

The survey was in its fifth year.

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.

200-unit village planned for site

21st May 2013

Source: Otago Daily Times

An artist's impression of the St Paul de Vence Queenstown village-style development proposed for an excavated site on Lake Esplanade. Image supplied.A French-inspired village with about 200 residential units is proposed for a steep piece of land on Lake Esplanade.

Heaven on Earth Corporation Ltd has lodged a resource consent application with Lakes Environmental for the proposed village, named St Paul de Vence Queenstown.

The site is an excavated piece of steep land between a reserve and the Rydges Hotel, with Thompson St behind. Creative director Maurice Orr, who lives in the Wakatipu, hoped the application would be approved and if all went to plan, construction could start in 2015.

Prices for the units would depend on size, he said. A two to three-bedroom unit could cost between $300,000 and $400,000.

He said with a lack of large-scale projects in the area, short-term benefits would include work for construction workers and long-term, the substantial rates boost and general spending from the residents and guests.

He said while it was accepted families with children could live in apartments in cities, Queenstown had not reached that stage and, consequently, he was unsure whether the development would be an answer to housing the resort's fast-increasing population.

Asked whether the units would be for visitors or residents, he said his view was to have ''a good balance of visitors and locals'' so visitors could come to a hotel and ''end up eating with a local''.

Key features of the development's design include glacial and snowflake shapes, white and glass being primary aspects and eight floors receding progressively up the steep site.

Another feature of the site, he said, was the neighbouring reserve area.

The resource consent application states that to the southwest of the site there is a steep recreation reserve which is ''almost a forgotten area'' and Mr Orr yesterday said he had creative hopes for it.

''One idea we have had was to make it into a sculpture reserve,'' Mr Orr said.

The site of the proposed village had always been earmarked for a hotel and it was already excavated when he purchased it.

He said he had been planning the development before Christmas.

Lakes Environmental has requested further information for the resource consent and, due to the consent still being processed, the units are not yet for sale.

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.

Housing chance if $1m grant approved

16th May 2013

Source: Otago Daily Times

A new ''boutique'' affordable housing project could be on the way for Arrowtown if a $1 million grant from the Crown is approved and the project is endorsed by the Queenstown Lakes District Council and the community.

The Community Housing Trust applied for the grant to enable a ''small architecturally designed'' development in Suffolk St, which would replace cabins on the site, previously part of the Arrowtown camping ground. The private and council-owned cabins are expected to be removed within the next few months.

Trust chairman David Coles said the proposal, which had been about a year in the planning, was ''exciting for Arrowtown'', but the trust needed to satisfy all parties before it could proceed with the development of 10 houses, each likely to have three bedrooms. Two would be set aside for senior citizens, with the remainder available for anyone who met the trust's criteria.

The intention of the trust is to provide housing for low to moderate-income households which contribute to the social, economic and environmental wellbeing of the district, but are genuinely struggling to commit to the area because of affordability.

The trust was established in 2007 by the council and is now an independent entity, its largest project to date the $10 million Nerin Square development in Lake Hayes Estate, where, on completion, there will be 37 two-, three- or four-bedroom homes, the last of which are expected to be completed by the middle of this year.

Mr Coles said the trust underwent a ''rigorous application process'' with the Crown last year to obtain pre-qualification as a housing provider, but to receive the grant the Crown had to be satisfied the project had merit.

The council would also have to approve the proposal, requiring a transfer of the land to the trust and an agreement the development would stay in community ownership for perpetuity.

While it had already discussed the proposal with the Arrowtown Rugby Club, which is based in the former camping ground's main amenities block, the trust needed to ''win the confidence of the Arrowtown people'' and answer any questions they might have.

There continued to be a ''high level'' of unsatisfied housing demand in Arrowtown, Mr Coles said.

The trust's strategy - to ''pepper-pot'' affordable housing across the district - had seen it take an interest in seven homes in the town, but more were needed. An attempt by the trust to develop affordable housing in Jopp St was stymied by plan change 29, the Arrowtown urban growth boundary, which had Jopp St outside the proposed boundary.

The plan change, proposed by the council, was appealed to the Environment Court, but in his February decision Judge Jon Jackson largely accepted it.

However, the council could not make it operative until rules had been formed around a small parcel of land at the end of the McDonnell Rd urban area to be included within the boundary, allowing about 12 additional sections to be developed.

The council was waiting for a jurisdictional hearing in the Environment Court before it could advance the matter.

Mr Coles said a public meeting was planned at the Athenaeum Hall in Arrowtown on Wednesday at 7.30pm to explain the project and answer any questions.

''There may be some concerns - in that case we'd like the opportunity to listen to what they have to say.''

The trust hoped to start on the project ''as soon as possible'' if it was approved by all parties.

Resort visitor nights increase 15.3%

16th May 2013

Source: Otago Daily Times

Strong international visitor numbers and record domestic visitor-night numbers were recorded in Queenstown in March, Statistics New Zealand says.

Total visitor nights in March stood at 255,138, up 15.3% compared with March 2012, the latest commercial accommodation monitor said.

International guest nights were particularly strong, up 19.6% at 169,105, and accounted for 66.3% of all guest nights in the Queenstown regional tourism organisational area.

Domestic guest nights were up 7.8% at 86,034, which was a record for domestic visitors in March.

Total guest nights for the region increased 7.7% for the year ended March 2013, compared with the previous corresponding period.

Destination Queenstown chief executive Graham Budd said in a statement this week the March results rounded off a pleasing summer season in the resort.

''We started the month with the NZPGA Championships and ended with the Queenstown Bike Festival. Helped by an early Easter and great weather, it was another record month.

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."

Queenstown's first eco-friendly show home opens

13th May 2013

Source: Voxy.co.nz

Award-winning Rilean Construction is leading the way in sustainable and eco-friendly home building, opening its first ever show home in Queenstown this month for a limited time.

The Queenstown-based company pioneered sustainable and energy efficient home building in the South Island when it launched its evolution home series in 2010 and has just signed its tenth contract this week.

The brand new four-bedroom, two-bathroom home in St Andrews Park - boasting majestic views of Lake Wakatipu and The Remarkables mountain range -- spans 225sq m and is the first evolution home to be opened to the public.

Located at St Peters Place off Highview Terrace it will be open every weekend in May between 10am -3pm. Private viewings can be made during May by appointment only.

Rilean Construction director Mick Moffatt said it was a great opportunity for people to experience an evolution home up close for the first time.

"Anyone thinking of building or just interested in energy efficient solutions can come and see for themselves why an evolution home is so energy efficient, healthy, warm and above all stylish," said Mr Moffatt.

"With the colder days upon us people will instantly feel the difference in warmth as soon as they walk in, and we’ll be happy to talk through how the building ‘works’ and the materials we use in construction."

Six new evolution contracts were signed in the last eight months alone adding to the three already completed homes. The company has four more in the pipeline including a project in Moeraki, and strong interest from another six or seven homeowners in the Queenstown area.

The first two evolution homes have been a resounding success with the second home on Speargrass Flat Road achieving the prestigious six-star Homestar rating for excellence in eco-friendly building, making it the first home in Queenstown to receive the accolade.

"It has definitely been something of an ‘evolution revolution’," said Mr Moffatt.

"Since we launched the concept we’ve seen steady growth in enquiries from people who now fully understand what we offer and the real benefits of these homes."

"In the last two years alone sales of evolution homes have accounted for over 30% of our revenue."

Mr Moffat added: "The evolution philosophy is simple; to design and construct healthier, warmer, more energy efficient and sustainable homes while reducing CO2 emissions."

"The feedback we’re getting from our new homeowners and potential new homeowners is that we’ve proved we can achieve that goal, even in our relatively harsh Central Otago environment. People’s knowledge of sustainable building practices and the evolution product has also increased and as a result the process has become more mainstream."

Independent research shows that living in an evolution home would reduce at least $900 off annual electricity bills and reduce CO2 emissions by 70%, compared to the same house with electric heating and the minimum insulation required.

Homestar is an independent body that is a joint venture between BRANZ (owned and directed by New Zealand’s building and construction industry) and the New Zealand Green Building Council, developed to give a single accreditation rating to New Zealand residential homes.

"Our aim is to continue to expand the Rilean evolution series across the South Island and we’re already receiving enquiries from a number of other locations," said Mr Moffatt.

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."

Q'town arrivals increase

10th May 2013

Source: The Southland Times

International passengers arriving in Queenstown Airport increased by almost 60 per cent for the month of April, totalling 18,370.

Just more than 10,000 international passengers used the airport last April.

Queenstown Airport spokeswoman Nina Crawford said the 59.3 per cent increase justified airlines increasing capacity on trans-Tasman routes to and from the resort.

Meanwhile, domestic passenger numbers stayed steady, with a slight increase of 0.4 per cent recorded to reach a total of 82,854 this April, from 82,599 last April.

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.

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.

Five Mile clears hurdle

30th April 2013

Source: Otago Daily Times

A $125 million retail complex, with a Countdown supermarket as a major tenant at the abandoned Five Mile site in Queenstown, has been cleared to progress after a judicial review instigated by Shotover Park Ltd was dropped yesterday.

Pak'n Save and Mitre 10 Mega representatives hoped opposing litigation for their separate supermarket and hardware store developments at Shotover Park, about 400m from Five Mile, would also be resolved. Shotover Park Ltd told the High Court yesterday its issues were ''satisfied'' and the judicial review of the Queenstown Lakes District Council's non-notified and non-complying resource consent for Five Mile was discontinued.

Shotover Park Ltd and other parties - the council, Lakes Environmental Ltd and Queenstown Gateway Ltd - settled the issue at the weekend on terms ''acceptable to all parties'', a joint statement announced yesterday.

The parties declined to reveal the terms of the agreement.

Shotover Park Ltd co-director Alastair Porter, who was involved in the negotiation, said yesterday he was ''very pleased that the matter's resolved, speaking for Shotover Park, and going forward we know Pak'n Save and Mitre 10 Mega are keen to now try and get their stores similarly resolved and we will be supporting them in that endeavour.

''It's progress on the Frankton Flats.''

Pak'n Save and Mitre 10 Mega intended to build stores side by side at Shotover Park. The Environment Court granted the consents, but the High Court released judgements earlier this month allowing appeals against the consents and sent the cases back to the Environment Court.

The council had appealed against Mitre 10 Mega, while Queenstown Central Ltd had appealed against both store consents.

The Environment Court must consider the consents against the High Court's verdict and also the interim decision for plan change 19: Frankton Flats.

Foodstuffs South Island Ltd property development general manager Roger Davidson, of Christchurch, said yesterday the company was ''very pleased to see some progress made''.

''It indicates a willingness by all parties to see development on the Frankton Flats and we look forward to working with the parties to ensure that we can bring a Pak'n Save to Queenstown.''

Foodstuffs received a High Court decision about its proposed supermarket last week and was reviewing the details with solicitors, Mr Davidson said. Acton Smith, of Invercargill, for Crossroads Properties Ltd, which was behind Mitre 10 Mega, said the outcome was ''very positive''.

''I'm hopeful what will come from it is a willingness of the other parties that have been involved with objections and appeals against Mitre 10 Mega and probably Foodstuffs.

''Maybe [it's] a start to the end of all the litigation we've all been subjected to and maybe there's a pragmatic answer that comes out the other end that will benefit the Lakes district with regards to cheaper groceries and products.''

Five Mile developer Tony Gapes, of Queenstown Gateway Ltd, Queenstown Lakes Mayor Vanessa van Uden and council chief executive Adam Feeley could not be contacted yesterday.

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. 

Government may fund Queenstown convention centre

26th April 2013

Source: NZ Herald

The Government may contribute funding to a proposed convention centre in Queenstown, Prime Minister John Key says.

Speaking at Trenz in Auckland yesterday, Mr Key, who is also the Minister for Tourism, said government funding would not be ruled out.

He had yet to be asked for money towards the proposed facility but expected such a request to be forthcoming "from everything I hear every time I'm down there [in Queenstown]".

The proposed centre was estimated to cost about $50 million and cater for up to 1000 people.

Mr Key said although it was still in draft design and consultation stages, it could soon be approved.

"The council [Queenstown Lakes District Council] has identified land and it looks like it could be consented quite quickly. They haven't formally come to the Government for money yet, but my guess is they probably will."

The Government would not fund the bulk of the centre, and it did not need to because it looked as though there were a number of interested parties, Mr Key said.

"But I'm not ruling out putting in some cash."

He also talked about the proposed convention centres for Christchurch and Auckland as having potential to boost visitor numbers nationwide.

In February, Queenstown Lakes Mayor Vanessa van Uden announced SkyCity Entertainment Group was the preferred operator for the proposed convention centre, and Lakeview at the top of Man St overlooking central Queenstown was the favoured site.

Parties would only invest if a viable case existed and it had community support, she said.

SkyCity Entertainment Group chief executive had previously said the company viewed Queenstown as having potential as a tourism and high-roller destination.

The project would be progressed by a consortium led by Ngai Tahu Property and Morrison and Co, which were expected to fund construction as well as own and operate the facility.

Recently, QLDC chief executive Adam Feeley announced the council was commissioning an economic impact assessment on the proposed centre, which would be included in its annual plan.