Home > Our Publications > New Zealand Outlook > 2004 > September

THERE is a major shortage of skilled workers in the Hamilton/Waikato area in central North Island and local firms can't expand because they cannot fill the vacancies.
Unemployment in Waikato is three per cent and Waikato Chamber of Commerce president Steve Saunders says that is strangling growth.
"Many businesses will find they have to get more innovation and creativity out of their existing staff and technology, which isn't such a bad thing because New Zealand's productivity does need to rise to ensure we're in the top 10 per cent of the OECD," Mr Saunders said.
However, he said the rising interest rates would not have any great effect on Waikato businesses. "Waikato has a robust and diversified economy and because of that there will be no major adverse impacts on businesses, but there will be a slowing down," he said.
Waikato Security owner Chris Mangan said his company had to turn down work to keep standards high. "We've been trying to fill five vacancies for six months, but the people out there just aren't suitable."
Mike Down of NDA Engineering in Hamilton said the company was also having to turn away some project work because six positions had been vacant for about a year. "There's been a shortage of labour for as long as I can remember," he said.
ANZ Bank's latest monthly Job Ads series showed that jobs advertised in big newspapers and on the internet rose by 3.4 per cent in July to 47,134.
Waikato Times newspaper job advertisements on a Saturday have been over 330 each week for some time (you can order your copy by using the form on page 21).
Things are certainly buzzing in Hamilton and there has been a record number of lifestyle blocks selling in the area.
The demand has come from a combination of new people arriving in the city and Hamiltonians moving from the city to give children a bit more space.
The primary demand has been for properties within 10 minutes drive of the city.
As the Waikato district plan has been relaxed and allowed more subdivision of 10 acre blocks, there has been an improved choice of sections for buyers who have been eager to snap them up.
Mid-range residential rental property, such as a three bedroom house in the suburbs with a garage is still in demand
Overall vacancy rates are still relatively low, well under 2 per cent.. Over the last 18 months we have experienced rental gains of up to $70 per week. However, recently these rents have come back in order to secure tenants.
Housing will continue to grow in Hamilton
A sample of the more prominent [above average] sales recently have included:-
* A beautiful renovated three level four bedroom home elevated with views sold under the hammer for $550,500;
* A modern townhouse with exquisite lake views, in Lake Road sold at auction for $500,000;
* A Cambridge character home on large section sold at auction for $500,000;
* Elevated family home with pool overlooking the Waikato River sold for $680,000;
* A section of:1.29 ha on Horsham Downs road, for future residential development sold for $900,000.
* Information provided by Lodge Real Estate, Hamilton to Ken Blacklock of Come and see NZ.