The Winter Chill is upon us but that hasn't slowed us down.

Winter is approaching, the first frosts have arrived and the autumn colours for which Central Otago is renown are now on display. The grape harvest for 2010 vintage is now complete, yields are down but the quality of grapes is encouraging.
Cromwell has shown a modest sales volume with slight decline in median sale price to $322,500. Section sales have remained at very low levels, and there has been a decline rise in the median sale price. Central Otago overall has shown a very low volume of vacant resident section sales, a decline in the median sale price to $148,500. Building activity has slowed to some extent, but some new homes continue to be built in and surrounding our main Centres.
Central Otago to some extent has been insulated from the recession due to high tourist traffic and movement of people from other areas and overseas into the attractive Central Otago environment, however there are signs of some weakness appearing in parts of the market.

The rural lifestyle market throughout Central Otago has shown a significant reduction in sales volume and also in median sale price. Sales of vacant rural lifestyle blocks have showed a very significant drop in sales volume of some 60% when compared to the previous year and a significant fall in median sale prices has taken place.

The industrial and commercial property market continues to show minimal sales volume and it is apparent that the demand for both commercial and industrial land has waned at this time. The level of commercial and industrial new building has considerably diminished in our smaller Centres as the demand for space has fallen off.

Reserve Bank Governor Alan Bollard said: “The New Zealand economy is recovering broadly as expected and growth is predicted to pick-up further through 2010. The official cash rate was held again (from 29 April 2010) at 2.5% for the eight quarter and is not expected to rise until mid 2010.
“Not withstanding the impact of stronger than expected export earnings, New Zealand households remain cautious, with the housing market and household credit growth subdued. Similarly, business spending is weak and firms continue to reduce debt”

Above text taken from Moore & Percy Autumn newsletter.

Cromwell, A Happening Place