http://nz.finance.yahoo.com/news/midday-update--all-eyes-on-economic-growth-figures-as-traders-bet-on-interest-rate-hikes-234927060.html
This article outlines the data produced by Statistics New Zealand, that is set to be released this thursday the 20th of March. The data follows economic trends from the final three months of 2013 and will allow economists to make further predictions as to might happen to the New Zealand economy in the next few years. The article outlines the rise in consumer confidence and increase in net immigration, both of these factors creating increased demand for housing throughout the country, a positive sign for Welly Real Estate.
http://nz.finance.yahoo.com/news/economic-activity-boost-nzier-031014889.html
This second article also analyses data and makes predictions for the near future.
The title and focus for the article is the growth of economic activity in the next couple of years.
Both articles suggest that there will be a rise in economic activity and GDP, leading to positive outcomes for Welly Real Estate through increased demand and economic stability in the housing market.
-Oliver Woolley
How does this relate to the commercial market? Do you think now is a good time for Welly Real Estate to expand into the hospitality and retail sectors?
ReplyDeleteWith clear indication of population increase it could be seen as a low risk and possibly profitable time to expand into those sectors. Also with the rise in consumer confidence the likelihood of an increase in GDP could also make it a successful time to invest money into these industries.
ReplyDeleteIn terms of the direct influences of these factors on the commercial market, there are several possible outcomes all of which may be experienced throughout the market. The first is that businesses respond to the increased consumer spending and seek to expand, this could mean increased demand for commercial property. Another possible outcome, influenced directly by the rise in population and increased net immigration, would be the introduction of new businesses into the market. These new businesses of course will be seeking commercial property.