Property sector Otago’s largest economic contributor
The Otago property industry had a direct impact of $1.4 billion or 14 percent to the region’s GDP in the year to March 2016, making property it the most significant contributor to the region. The property sector’s economic contribution was just over double that of both agriculture and manufacturing and nearly 1.8 times that of education and training.
Dunedin City makes up 46 percent of the total value of buildings in the region and Queenstown-Lakes, 34 percent. Dunedin holds the lion’s share of commercial floorspace, however, representing 54 percent of regional commercial floorspace, against Queenstown’s 20%. The region represents six percent of all commercial floorspace available in New Zealand.
Property Council Otago chapter chair Geoff Thomas says that the region could enjoy further employment and economic rewards if future development is handled in a collaborative and responsible manner.
“For the property industry to upgrade obsolete buildings and construct quality new ones, it is necessary for Council and government and the property industry to work constructively together to minimise obstacles to quality future development in a responsible manner.”
The 8,150 people who were directly employed in the property industry earn an average of $56,500 per annum which is lower than the national property sector average earnings of $60,200.
Key research findings
(as at March 2016)
The sector contributed $1.4 billion to the Otago economy in the year to March 2016 making up 14% the region’s total GDP, compared to 12% nationally.
The property industry is Otago’s seventh largest employer, employing 8% of the region’s employees, compared to the fourth largest employer nationally.
52% of those employed in the property sector are based in Dunedin City.
Construction services is the dominant sub-sector of the property industry in the region representing half of all property industry employment.
Females are slightly less represented in the Otago property sector comprising 22% of employees, compared with the national average of 24%.
The average income in the Otago property sector is $56,500 per annum (compared with $60,200 nationally)
The full report can be found here