Category: MIL-Submissions

Source: Meridian

18 December 2024 – New Zealand’s electricity supply has received an early Christmas present following the commissioning of a new transformer at Meridian’s Manapōuri Power Station.

New Zealand’s largest hydro power station has been operating at reduced capacity for around two years, following the discovery of faults in two of its seven transformers.

Since a replacement transformer arrived on site in October, work has been underway to get it connected and commissioned ahead of Christmas.

Meridian General Manager Generation Tania Palmer says the milestone has not come easy but is important for New Zealand’s electricity system.

“It’s been a long road of investigating faults, testing solutions and ultimately procuring, transporting and installing this new unit, but we’re now able to generate 128 more megawatts from Manapōuri than we were able to at this time last year.”

The new transformer has increased generation capacity at Manapōuri from a restricted limit of 640 megawatts (MW) to around 768 MW – close to the maximum 800 MW allowed under its consent conditions.

The 104-tonne transformer arrived at Manapōuri in October after a trans-Tasman journey, and subsequent delivery to site by truck and barge – the first time a piece of generation equipment this size had been barged across Lake Manapōuri.

The second replacement transformer is due to arrive in late 2025.

• Video showing the transformer’s journey:

Source: Raine & Horne

Leading real estate group Raine & Horne is predicting growth of 5-7% for New Zealand real estate in 2025

Key highlights

• Raine & Horne forecasts 5-7% growth in New Zealand’s property market, driven by rate cuts, shorter days on market, and increased activity from empty nesters and returning expats.
• Tauranga sees empty nesters trading down, Queenstown attracts returning expats with lifestyle appeal, and Christchurch experiences a resurgence fueled by growing demand and FOMO.
• The Reserve Bank’s rate cuts in 2024 are boosting buyer and vendor confidence, leading to stronger sales, higher open home attendance, and market stabilization across Aotearoa.

Christchurch, New Zealand (18 December 2024) – The New Zealand real estate market is set to rebound in 2025, with leading property group Raine & Horne forecasting 5-7% growth.

After a year of stabilisation following a series of rate cuts, the market is showing renewed strength driven by lower mortgage rates, shrinking days on market, and heightened buyer activity from empty nesters and returning ex-pats.

Raine & Horne, with over 60 offices across Aotearoa, also highlights the possible impact of FOMO (fear of missing out), which is expected to energise the market further in the year ahead.

“The Reserve Bank’s series of rate cuts—starting with a 25-basis point reduction in August, followed by a 50-point cut in October and another 25 points in November—are now filtering through to the market, prompting buyers and vendors to take action,” said Mr Angus Raine, Executive Chairman of Raine & Horne.

“We’re witnessing increased sales, shorter days on market, and higher attendance at open homes. While these are still early signs, market activity has noticeably picked up momentum since the initial rate cut in August, which bodes well for growth in 2025.” Mr Raine added.

Mr Keith Niederer, Network Manager, Raine & Horne, noted that after a challenging period for New Zealand’s real estate markets, signs of stabilisation are emerging, with several key trends expected to shape the year ahead for various markets.

“Auckland continues to be an attractive market for both buyers and investors, especially as the city’s inner suburbs begin drawing interest from new demographics,” Mr Niederer observed.

“In late November, we auctioned a property in Saint Marys Bay that caught the eye of New Zealand ex-pats based in the United States who are planning to return home.”

Empty nesters to trade down in Tauranga

In the Tauranga district with the region of Bay of Plenty, Mr Niederer noted that increased market activity is prompting more empty nesters to consider trading down, a trend he expects to gain momentum in 2025.

“Many families have lived on a spacious property in a nice street for 30 years, but now they’re looking to scale back and use some of their capital gains to support their adult children,” he explained.

 “The lawns are too big, the hedges need constant trimming—it’s a lot of work. So, they’re thinking, ‘Why not cash out, simplify life, and maybe give the kids a little help along the way?’”

This shift is particularly evident in Central Tauranga’s avenues, where long-time residents of charming older homes on quarter-acre lots are reassessing their needs.

“They no longer want four bedrooms and a large yard to maintain,” Mr Niederer said. “What they’re looking for now is something low-maintenance—a lock-up-and-leave option that allows them the freedom to visit family for a week without worrying about upkeep.”

Mr Niederer adds that older property owners could benefit from the development of two and three-bedroom apartments with lock-up garages in Tauranga city, located just a 5-minute walk from both the beach and the CBD.

Queenstown to attract returning ex-pats with lifestyle appeal in 2025

Mr Niederer said Queenstown is experiencing a surge in activity, driven mainly by returning ex-pats eager to secure their piece of this scenic haven.

“Queenstown’s unique mix of lifestyle appeal and investment potential makes it a prime destination for those returning to New Zealand,” he noted. “With its strong tourism industry and world-class outdoor recreation, it’s an ideal safe haven for many.”

He added that returning ex-pats, particularly from the UK, are drawn by favourable exchange rates.

“They’re returning with British pounds and taking advantage of excellent currency conversion, which helps them invest in Queenstown’s stunning alpine lifestyle—complete with skiing, breathtaking mountains, and vibrant community living.”

Contrarian Christchurch set for growth in 2025

Christchurch is showing plenty of positive signs as 2024 comes to an end, with some properties attracting multiple interest and some buyers seemingly motivated by a ‘fear of missing out’ (FOMO).

However, Mr Christian O’Malley, Franchise Owner Raine & Horne Cashmere, says, “Whilst the sell-through rate under the hammer is around 50%, good quality properties will always attract multiple interest, regardless of the market conditions.

“In my seven years of experience, and more so in most recent years, Christchurch seems to have bucked the trend and has been less impacted by economic conditions. Even when other cities and regions face difficulties, Christchurch maintains its appeal, offering strong opportunities for both buyers and sellers.”

Mr O’Malley says Christchurch’s affordability compared to other major cities, such as Wellington and Auckland, is a key factor in its market resilience. In October 2024, the median for Christchurch City was $699,000 compared to Auckland City ($1.133 million) and Wellington City ($881,000)[i].

“Christchurch City’s median house price in October landed at $699,000, only 5% lower than its peak of $730,000 in February 2022, and this despite having an increase in housing stock available compared to previous years” Mr O’Malley says.

“This is a strong sign of the city’s ongoing appeal to buyers, especially those from outside the Christchurch and Canterbury region. Roughly 30% of online portal views now come from outside Christchurch and Canterbury, compared to roughly 10% in 2018.”

Looking ahead to 2025, Mr O’Malley believes Christchurch is on track for more stable market conditions, but he anticipates an increased number of properties to be listed over January/February 2025.”

Mr O’Malley also advises property owners should focus on presentation and investment in marketing to attract buyers in the competitive 2025 market.

“Properties within popular school zones, especially those that are tidy, well-presented and offering modern comforts will be in high demand. If you invest a little more in presentation, you will recoup that investment when it comes to selling.”

Source: Consumer NZ

With another “hyped-up” marketing event just around the corner, Consumer NZ shares its tips to arm Boxing Day bargain hunters with a winning shopping strategy this year.

“Businesses are fighting for your dollar, and you’re fighting for a deal. You might score by buying at half price – or you might take one on the nose if the deal isn’t genuine,” says Abby Damen, communications and campaigns adviser at Consumer.

“Shoppers need to keep their eye on the prize if they want a chance in the ring on Boxing Day.

“Savvy shoppers should have a game plan to avoid falling for the sales hype and buying a dud.”

Come up with a game plan

Damen says Boxing Day is another marketing opportunity for businesses to get consumers to part with their money. But with the financial outlook remaining grim, she urges consumers to stay on their toes this year.

“Our most recent sentiment survey found that nearly 50% of New Zealanders feel pessimistic about the economy in the next year.

“In this environment, many shoppers are looking for ways to manage their purchases, and more (27%) are relying on Buy Now, Pay Later services than they were in January of this year (24%).

“A big Boxing Day discount and you don’t have to pay upfront? It’s no wonder these payment plans are enticing. But we warn shoppers to think carefully before signing up to Buy Now, Pay Later services, because if you start missing payments, you’ll pay hefty default fees.”

To avoid making an impulse buy that you later regret, Damen says shoppers should do their research, discern their wants from their needs, set a budget – and actually stick to it.

“While the Consumer Guarantees Act has great protections, retailers aren’t required to provide refunds if you change your mind.”

Know the rules of the game

Damen says you shouldn’t believe the signs at the checkout that say, “no refunds” or “no exchanges on sale items”. These blanket disclaimers are likely to be misleading.

She also warns against getting fobbed off by retailers claiming you need the original packaging and receipt to return a faulty item.

“If you buy a heavily discounted product on Boxing Day only to find out it’s got a fault, the retailer is required to put things right. You don’t need the original packaging, and an e-receipt or bank statement should be sufficient to show proof of purchase.”

Damen also urges shoppers to stay alert to online pressure tactics and not be tempted by extended warranties – you’re already covered under the Consumer Guarantees Act.

“Don’t believe the ‘someone in Auckland just bought this’ or ‘only three left!’ claims.

“They’re often not true – they’re marketing strategies that play on our FOMO (fear of missing out) and can be very effective at encouraging impulse buys.

“These are game tactics you don’t want to fall for.”

Play the long game

“While specials are always attractive and exciting, we suggest waiting for the thing you’ve been consistently coveting to go on special, rather than just grabbing whatever’s on special now,” says Damen.

For example, if you’re in the market for a home security system that’s easy to install and use, then wait for the one that’s easy to install and use – not the one with the discount sticker.

Damen says Consumer’s product tests show that price isn’t always an indicator of quality.

“Just because something is discounted, doesn’t mean it’s a good deal.”

But Damen warns against playing the long game when it comes to gift cards.

“Check your wallet for any unused gift cards before heading to the sales.

“One in five gift card holders end up with expired cards, and Consumer estimates over $10 million is wasted on unredeemed gift cards every year. So, when it comes to gift cards, we recommend you ‘use it or lose it’ this Boxing Day.”

 
 
About Consumer

Consumer NZ is an independent, non-profit organisation dedicated to championing and empowering consumers in Aotearoa. Consumer NZ has a reputation for being fair, impartial and providing comprehensive consumer information and advice.

Source: Statistics New Zealand

Quarterly current account deficit $6.2 billion – 18 December 2024 – New Zealand’s seasonally adjusted current account deficit narrowed by $0.9 billion to $6.2 billion in the September 2024 quarter, according to figures released by Stats NZ today.

Fall in goods imports drives the narrowing deficit

In the September 2024 quarter, the seasonally adjusted goods deficit narrowed by $0.7 billion to $1.9 billion, driven by a $0.8 billion fall in goods imports.

“In the September 2024 quarter, New Zealand imported fewer cars than last quarter. Also contributing to the fall was transport equipment imports with no defence aircraft imported, which were recorded in the June 2024 quarter,” international accounts spokesperson Viki Ward said.

“There was a higher volume of petrol imports in this quarter.”

Goods exports decreased by $0.1 billion, driven by meat and casein.

Source: Te Ara Ahunga Ora Retirement Commission

A comprehensive analysis of what life looks like for retirees in New Zealand has revealed many are missing out on medical appointments, social activities and radically changing their shopping habits to manage the cost-of-living challenges.

Te Ara Ahunga Ora Retirement Commission conducted qualitative and quantitative research with more than 1450 New Zealanders aged 65 and over.

The research found that 37% aged 65 plus say that their financial situation has worsened over the last two years. Increasing ‘cost-of-living’ pressures have also caused 46% of participants to say they have had to reduce social interactions or activities important to them, 28% now buy less food and 26% are putting off medical treatment.

Retirement Commission Research Lead Dr Jo Gamble says the findings highlight how tough some older New Zealanders have found the last few years and the precarious situation people face if they’re not mortgage-free, with additional sources of income.

“We can see that those who are renting, or who have experienced life shocks after 50 or have disabilities or long-term health conditions are finding things the toughest. These groups typically have fewer financial assets and are therefore less likely to be financially resilient.

“The findings illustrate the significant financial buffer being mortgage-free provides compared to those renting. In addition, people with investments and/or KiwiSaver were nearly twice as likely to feel their financial situation was comfortable compared to those without.”

For people on low incomes, completely reliant on NZ Super, the change in economic situation over the past two years has meant more than just tightening the belt, moving instead into day-to-day survival.

Rent was nearing unaffordable for one research participant, who said: “My rent has gone up twice in the past two years by $60, and the house – there’s a lot of stuff wrong with it, like it hasn’t been insulated. I’m too scared to complain. Always think that if I don’t have anything to eat, at least no one would know because I live on my own…”

For people on middle incomes, belt-tightening had generally been sufficient but there was growing unease about when things would return to normal since they were eroding their security/nest egg sooner than they planned to.

This research further highlighted the reliance people have on NZ Super, with 39% of respondents saying their only income is from NZ Super and have no other investments, savings or KiwiSaver. Over a third (36%) of working older people primarily do so because of financial pressures.

Retirement Commissioner Jane Wrightson says, “there tends to be a ‘golden assumption’ that over 65s today are mortgage-free couples living in relative comfort on NZ Super, but there’s been little research to test whether this is actually the case.

“This research provides us with a comprehensive view of what retirement really looks like today and highlights the missing voices of a group that can go largely unheard. It stands as an important reminder that things are not always as ‘golden’ as some may assume.

“These insights provide us with valuable evidence to help identify practical policies and interventions that could lead to better retirement outcomes for New Zealanders in the future.”

By the numbers:

• 37% say their financial situation has worsened over the last two years, representing a net change of -26 (11% say their financial situation has improved).
• 46% of participants have reduced social interactions or activities important to them, 28% buy less food and 26% are putting off medical treatment.
• 14% of over 65s don’t describe themselves as ‘retired’ (the proportion increases to 20% for 65-74s). Over a third (36%) of working older people primarily do so because of financial pressures.
• 39% of participants say they’re completely reliant on NZ Super for their income.
• Fewer than half (48%) of participants live with their spouse/partner and own their homes mortgage free.
• 43% of mortgage-holders say they don’t have any investments/savings/KiwiSaver
• 56% of participants say they feel financially comfortable or very comfortable, leaving 32% feeling financially exposed and a further 12% feeling as if they’re in a financially poor situation.

This research will support the 2025 Review of Retirement Income Policy (RRIP) which the Retirement Commission is required by the Government to undertake every three years.

This week the Terms of Reference for the RRIP have been released, with the Retirement Commission asked to undertake further research on topics including KiwiSaver and other savings, emerging trends and how these will play out in New Zealand over the next 25 years, the experiences of women in retirement and how New Zealand retirement policies compare globally.

Notes:

This research builds on the 2022 Te Ara Ahunga Ora qualitative research project which examined the retirement of experiences of 65 plus.

Source: Civil Aviation Authority (CAA)

Summer is here, which means it’s the season of barbeques, parties, and events. Aviation Security Officers want you to know which well-intended gifts and items won’t make it through the security screening, so you don’t turn up empty handed at your in-law’s house.

With domestic travel ramping up in December, we’ve created a checklist to make security screening as smooth as possible – don’t forget to check it twice!

Batteries

These are the number one item that cause issues for passengers at screening points. Batteries need to be packed in carry-on and each passenger is entitled to bring 20 batteries. Each spare battery needs to be individually protected either in retail packaging, a protective pouch, in an individual bag, or with tape over exposed terminals. Batteries are not allowed in checked baggage.

Electronic items

Gifting Air Pods or a power bank this Christmas? These items need to go in your carry-on luggage and not in your checked bag.

These items have lithium batteries which are classed as Dangerous Goods. While extremely rare there have been cases of lithium batteries exploding in cargo holds, which would be catastrophic and potentially fatal on a passenger aircraft.

Tools and power tools

Thinking of fixing up the bach this summer? Put your power tools in your checked bag.

Please take steps to prevent the power tool from accidentally turning on. Use trigger locks or secure the on/off switch in the off position with tape.

Spare batteries, including those in moulded cases, must go in your carry-on bag. Batteries are prohibited from checked luggage.

Imitation weapons

Toy guns, toy swords – there are a lot of toys that look like weapons. All these need to go into your checked bag. If you put them in your carry-on there is a chance the item will need to be taken at the screening point. The same goes for gimmicky gifts that look like the “real deal” – we often see plastic grenades and fake guns that hold liquid or toiletries. Keep these in your checked bag.

Celebrating with a ‘bang’

At this time of year officers always see Christmas crackers, party poppers and fireworks in people’s luggage. While Christmas crackers can go on planes in carry-on or checked-in luggage, cracker snaps, party poppers and fireworks are not allowed on an aircraft at all.

Keep it in your bag

This past year we have installed Computed Tomography (CT) scanning machines which enables laptops and liquids to be left in carry-on bags, which has enhanced the passenger experience by streamlining screening for passengers.

The volume of liquids, aerosols and gels, carried by travellers on flights still applies, and should be carried in individual containers of 100ml or less, with the total number of containers that are 100ml or less must not exceed one volumetric litre.

More information about these restrictions is on our website (ref. https://govt.us19.list-manage.com/track/click?u=f87e4df3e4e99e9d7eb7b4c7e&id=3a5a4a2008&e=f0dc75bbf6 )

Arrive on time

It’s a busy time at the airports, so our advice to passengers is to check what can and can’t go on an aircraft, arrive at the airport with extra time to go through security screening, and expect queues due to the large number of people flying. Make screening easy for yourself by not wearing over-the-ankle boots or coats and empty your pockets.

You can check out all the rules on over 90 popular items on our website (ref. https://govt.us19.list-manage.com/track/click?u=f87e4df3e4e99e9d7eb7b4c7e&id=15d2699b83&e=f0dc75bbf6 )

Our priority is keeping New Zealand skies safe and secure, so you can focus on what really matters this summer. Safe travels and happy holidays.