Growth Indicator Report, Hamilton City Council

Growth Indicator Report, Hamilton City Council6 Apr 2017

Some bullet points taken from the Growth Indicator Report, Hamilton City Council
• Over the last two years Hamilton has experienced its strongest residential housing boom in both the volume of new dwellings and average sale prices since the 2008 financial crisis.
• Economic indicators such as GDP in key sectors, reduced unemployment and levels of new consents have shown strong positive trends over the same period.
• Hamilton’s economy (3.6 per cent) grew quicker than New Zealand’s economy (2.7 per cent) last year and has been doing so since 2014.

• Population Estimate (as at June 2016) 161,200
• City Area 11,093ha
• Number of Households (as at 30 June 2015) 56,385
• Number of employees(as at 30 June 2015) 85,358

The average house price in Hamilton for the year to June 2016 was up an unprecedented 32 per cent compared with a year earlier. Hamilton house price growth exceeded that of Auckland, Tauranga, and New Zealand. However, average house values are lower in Hamilton than all of the above despite the rapid growth over the last year.

Annual house sales for the year ending June 2016 increased by 33 per cent to 4386. This compares with the ten year average of 2865. Historically low interest rates for mortgages are facilitating higher levels of debt to be serviced despite low income growth, driving up house prices
Hamilton’s affordability has decreased compared to New Zealand. Although this has been the trend for all major North Island cities, Hamilton is still the most affordable.

Hamilton’s GDP is estimated to be $7.7b ($2010) for the year to June 2016. This represents an increase of 3.6 per cent over the past year. Hamilton’s economy has grown strongly over the past 15 years, averaging three per cent per annum. The exception being during the widespread recession following the 2008/09 global financial crisis (GFC). Hamilton’s economy grew quicker than the New Zealand economy (2.7 per cent) last year and has been doing so since the 2014 financial year. A key driver of growth, both in Hamilton and New Zealand, has been a migration-fuelled population increase, which has pushed up consumer demand and is forcing higher levels of construction activity. Hamilton’s GDP has been driven over the last five years particularly by the electricity, gas, water and waste services, manufacturing and the healthcare and social assistance sectors. These sectors have increased by $161m, $160m and $121m respectively over this period. Dairy product manufacturing is Hamilton's biggest export sector comprising approximately 60 per cent of Hamilton’s total exports across all sectors.

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