Dunedin's prospects seem bright

Little more than half way through Dunedin's 2013-2023 economic development strategy, the city's prospects look bright.

Dunedin's GDP growth was 2.6% last year, job growth was up 8% and residential building consents up 3.3% as at June 2019, according to Enterprise Dunedin.

A 4.2% increase in the number of people enrolled with local health providers indicates a further acceleration in population growth.

This is in stark contrast to Christchurch, where GDP growth has slowed to a pedestrian 1.2% as it decelerates out of its rebuild period.

Christchurch-NZ's latest quarterly economic update notes a need for the city to attract more business, activity and people to the region and grow productivity - essential to replacing construction activity.

At the same time, however, investor confidence for office and retail property in Christchurch remains low, with high supply and tenant churn in the CBD, the report says.

Enterprise Dunedin director John Christie said the scale of pending large scale investment in Dunedin in coming years, including the $1.4billion hospital project, could push the city's performance above the national average through 2020s.

"The significant investment from the hospital, university and various council projects will provide stimulus in much the same way that the Christchurch rebuild pushed up activity in the Garden City."

Mr Christie notes however that a "careful balancing act" is needed over the years ahead to continue fostering Dunedin as a great place to live, work, study, visit, and do business across a broad range of industries.

"Ongoing expansion with a range of spending and investment indicators shows that both households and businesses are confident in Dunedin's prospects.

"Metrics of population growth are also highlighting an ongoing stream of people choosing Dunedin as a place to live and work, with evidence showing that the number of people without jobs is continuing to improve.

"This broader economic development aim will ensure that Dunedin remains in good shape, even when infrastructure investment stimulus eventually wears off. "

Otago Chamber of Commerce's Dougal McGowan said while a growing city made for an exciting place to live, it also came with challenges, particularly in the retail and tourism space.

Property pricing was also becoming a limitation, he said.

"We can see now with people wanting to come and live here that property prices are increasing at a more rapid rate than incomes, so the value proposition becomes harder to sell."