Southland Rises to Top in ASB Economic Report
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- Southland topped ASB’s Economic Regional Scoreboard for Q1 2024.
- Building consents in Southland surged by more than 50% year-on-year.
- Future growth in aquaculture is anticipated to boost Southland’s economy further.
Southland has surged to the top of ASB’s latest Economic Regional Scoreboard for the first quarter of 2024. This scoreboard ranks regions based on year-on-year growth across various measures, including employment, building consents, and retail sales.
ASB Chief Economist Nick Tuffley revealed that Southland’s impressive performance dethroned Auckland as the most prosperous region. Tuffley highlighted that Southland recorded the fastest building consent growth in the country, with an increase of more than 50% year-on-year. Additionally, house sales and prices in Southland have risen by 32% and 4.4%, respectively.
“Invercargill City Mayor Nobby Clark is not surprised that Southland is the top region in the ASB regional economic development report. With plans for data centres, a hydrogen plant, the 20-year Tiwai deal, and aquaculture, Southland as a region is going places,”
Tuffley said. “We expect Southland’s sterling run to continue next quarter, with favourable farming conditions relative to other parts of the country helping revenue and confidence.”
While Auckland enjoyed the strongest population increase and highest consumer confidence score, its overall performance was described as “middling.” Tuffley suggested that Auckland might face further declines due to peaked net migration and residents adjusting their spending to meet higher mortgage costs.
The bottom of the South Island has seen the strongest growth in the early part of the year, but prospects for the rest of the year appear subdued, according to ASB’s report. The mixed activity includes modest increases in house prices and retail spending, but a cooling labour market and soft migration figures present challenges.
Southland’s ascent, driven by strong construction and housing activity, resulted in a solid gain of ten places in the growth stakes, knocking Auckland off the top spot. Otago maintained its position in second place, and Gisborne/Tairawhiti climbed to third.
Future growth in aquaculture is expected to further boost Southland’s economy. Since 2020, Southland has been recognised as an emerging hub for technological infrastructure, with significant investments aimed at strengthening the region’s data centre capabilities.
Notable developments include the T4 Group’s $50 million carbon-free data centre in Southland, with construction of the first stage set to complete by March 31, 2025. This project is part of T4 Group’s dedication to environmental sustainability, utilising renewable energy sources such as solar power.
With strategic acquisitions and developments, T4 Group solidifies its leadership in providing secure, reliable, and green data centre services, supporting New Zealand businesses’ digital needs and fostering significant community engagement.