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4 Business Sectors That Are Great for Investors in New Zealand Right Now
In 2017 the World Bank ranked New Zealand as the second easiest place in the world to do business and first in the world when it comes to the ease of starting a new business. Its competitive tax rate and fewer restrictions for starting a business venture are just a few of the many reasons why investing in New Zealand is a favourable scenario. New Zealand has a stable political and social environment, making it an attractive option to potential investors.
Currently, New Zealand is growing in many industries and what follows is a list of four business sectors that are great for investors in New Zealand right now.
Information and Communications Technology
The technology sector in New Zealand provides multiple opportunities for investment, and this sector alone contributes 16.2 billion dollars to the national GDP and consists of 28,749 firms that employ 98,900 workers. These figures are from June 2016 and are likely to have increased since then. The technology sector continues to grow, and 2016 was a record year for investment in this industry. The industry experienced a 239 per cent increase in foreign investment opportunities, and $1 billion in capital was raised. Each region of New Zealand experienced growth technology during 2016, which makes this field an excellent sector for investing in the future. Wellington and the lower North Island, for instance, have had the best compound annual growth rate for tech businesses compared to any other NZ region, up 9.8 percent during the last five years. Any commercial property investor would be smart to seek out an emerging tech company as potential long-term tenants.
Early Childhood Education
Currently, the early childhood education industry is booming, partially due to higher participation of mothers in the workforce. In December 2012, a survey completed by Statistics New Zealand found that 55.7 per cent of partnered mothers with children under 4 worked outside the home, presenting an obvious need for quality child care services. Particularly in regions such as Auckland, where the population is growing thanks to the number of people relocating to the area, mothers are having to book spots in child care centres up to six months in advance to secure enrolment.
The ECE sector is seen as quite secure and stable because as long as women are starting families and devoting time to their careers, they will require quality child care. This creates an attractive market for an investor.
As migration remains strong for New Zealand, the demand for residential and commercial construction continues to exist. According to Statistics New Zealand, in May 2017, building consents were issued for 2,794 new dwellings. This is an increase of 8 per cent from the previous year in May 2016. Construction growth is happening everywhere across the entire country, not just in traditionally busier areas such as Auckland and Canterbury. In the Waikato region, in particular, there were 3,600 more people working in construction during the March 2017 quarter. Opportunity abounds for those investors interested in the construction industry. It’s a sector that’s expected to continue flourishing.
Consumer confidence is currently exceeding 20-year highs. While retail isn’t the top-performing industry across the country, certain pockets of it, including online retailing and those industries related to tourism, continue to thrive. As of quarter two of 2017, there were over 700 businesses listed for sale on realestate.co.nz. This number is up 21.8 per cent from four years ago. Purchasing an established business with a known brand is often a sure-fire way to ensure success and profit.
Finding the right sector in which to invest can be challenging, but by keeping these strong industries in mind, smart-minded investors are sure to find some excellent opportunities in these industries in particular.
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