When it comes to real estate in New Zealand, or in any other country for that matter, the industry doesn't exactly stand on its own two legs. In most cases, changes in the housing market are very closely tied to movements in the economy and the job market. Local real estate values often flourish when prosperity increases, as residents will have more wealth to buy properties with.
It's always been known that one of New Zealand's largest export industries is tourism.
A booming year for tourism
It's always been known that one of New Zealand's largest export industries is tourism. The most recent Tourism Satellite Account report by Statistics NZ shows that in the year ending March 2015, the total expenditure in this industry was $29.8 billion - a massive 10.3 per cent jump from the previous year.
Breaking down the stats, the report also shows that international tourism expenditure rose by 17.1 per cent to $11.8 billion in this period, while domestic expenditure increased by 6.3 per cent to $18.1 billion.
Overall, the industry directly contributed $10.6 billion to the country's Gross Domestic Product, adding 4.9 per cent to GDP. Industries that supported tourism businesses also added a value of $7.9 billion and 3.6 per cent to GDP.
Clearly, this sector is a big gateway to wealth for this country. If real estate in New Zealand wants to continue flourishing, this prominent area of our economy must also grow.
A night at the movies
Sir Peter Jackson's movies of J.R.R Tolkien's epics have always been one of New Zealand's claims to fame. This will look to increase even more, as the legendary director announced building the Wellington Movie Museum and Convention Centre, a $134.4 million project to feature sets, equipment, props and other memorabilia from several of his famous movies.
Homes for sale in the region could experience a healthy boost
A December 9 release by the Property Council of NZ supported this move, saying it's an opportunity to bring new life to the city's economy.
"Wellington has been crying out for substantial investment over the last 10 years," says Wellington Branch President Mike Cole, remarking that the movie museum is just the edge that this city needs to bring in new business and investment.
Furthermore, the Property Council applauds the city council for providing "breakthrough infrastructure and facilities at minimal exposure to the Council and to ratepayers."
When Peter Jackson's movie museum gets completed, it could indeed spark foreign interest in New Zealand and specifically Wellington. Homes for sale in the region could experience a healthy boost should more investors and visitors decide to arrive on our shores thanks to this project.
