In Wellington City the NZ Government contributes to more than 30% of office spacing in the CBD. With a tax deficit of $637M we can expect to see further restrictions on Government spending in the immediate future. This is expected to have a negative effect on "Welly Real estate" as we can expect welly to follow the capitals lead as Government spending contracts.
This decrease in Govt. spending will drop the demand for office spaces in Welly, increasing vacancy rates and will push prices down.
How does this article relate to and/or impact Welly Real-estate?
ReplyDeleteThe current Government policy aims to reach a $75M budget surplus for the 2013/14 year.
Deletehttp://www.stuff.co.nz/business/budget-2013/8680154/Government-surplus-on-a-knife-edge
In Wellington City the NZ Government contributes to more than 30% of office spacing in the CBD.
With a tax deficit of $637M we can expect to see further restrictions on Government spending in the immediate future.
This is expected to have a negative effect on "Welly Real estate" as we can expect welly to follow the capitals lead as Government spending contracts.
This decrease in Govt. spending will drop the demand for office spaces in Welly, increasing vacancy rates and will push prices down.
This was helpful thanks. Do you think that a drop in government spending will reflect a drop in corporate spending also?
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