Bay nation's best for employment

Craig Innes, dealer principal at Ebbett Tauranga. Photo/George Novak

The Bay of Plenty is leading the country in job growth, with house sales and retail spending also surging ahead, a new economic report says.

The latest ASB regional economic scoreboard for the December 2014 quarter shows an annual 13 per cent increase on employment compared with the December 2013 quarter - the biggest hike in the country - while the region ranked third in overall statistics behind Auckland and Christchurch.

ASB rural economist Nathan Penny said the Bay performed strongly over most indicators with construction activity 15 per cent ahead of the previous quarter, house sales 16 per cent up, house prices 3.7 per cent up, guest nights up 6 per cent and car sales in front by 34 per cent compared with the national average of 20 per cent.

"It's a good year for the Bay of Plenty. Things have turned in the kiwifruit industry and there has been a rebound in the housing market. That's feeding through into households feeling more confident and starting to spend."

Harper Smith Recruitment director Paddy Shaw said employers were now struggling to find skilled people to fill jobs in the construction sector.

Quantity surveyors, estimators and good project managers were tough to find, he said.

"I have clients ringing me pleading every week saying where are they? It's a candidate-driven market and they are well looked after.

"There has been a reduction in people applying for jobs but a dramatic increase in jobs available."

Ebbett Tauranga principal dealer Craig Innes said that, in 2014 it sold 523 new Holden vehicles compared with 409 in 2013 and 246 in 2012. Growth had been steady and 2015 started well. "Small to medium businesses are buying a lot of commercial vehicles so a lot of growth has come out of that sector."

Tauranga Chamber of Commerce chief executive Dave Burnett said the data reinforced positivity among businesses.

"We are seeing businesses employing more staff and with the kiwifruit industry coming on in the next few weeks those figures look good and are set to increase."

LJ Hooker Tauranga franchise owner Neville Falconer said volumes of sales had increased compared with the previous 12 months when there was a slight downward trend.

Interest from outside the area had been strong with Aucklanders moving south for employment or "cashing out early" and buying a home that they intended to live in over the next two to five years.

"We are optimistic of containing a solid market. I am not sure if it is in the interest of anybody to see a market racing ahead."

Chief executive of Eves and Bayleys Real Estate Ross Stanway said it was a healthy market for sellers and buyers. There was also new stock being added to the supply side of the market including land and build packages, he said.

"Well known local and national builders have got the confidence to enter into that market. Two years ago that was not happening so there is a good balance between supply and demand in our region."

By the numbers

Employment up by 13 per cent - highest in country
Car sales up 34 per cent
House sales up 16 per cent
House prices up 3.7 per cent
Guest nights up 6 per cent
Population up .9 per cent