Ryman Healthcare’s new retirement village will have a huge impact on the local housing market. Not only will the $60m project inject welcome cash into the local economy, but it will also create a flow on effect in the housing sector as many folk move houses.
Unlike a new factory or processing plant, Ryman’s end product creates new housing opportunities which means all those people who will buy a retirement villa at Ryman’s centre will end up selling their existing homes and so a chain reaction begins.
This will have an impact on future market prices. Gisborne’s population is static and has been so for many years. So if there is not an influx of new people coming to Gisborne, there will be a strong supply of houses for sale in Gisborne but not an increase in demand. The law of economics of how market prices are driven in part by the supply and demand, will come into play and we may see a further easing of prices. But if on the other hand the projected population growth for the region kicks in, then Ryman’s new centre may be the answer for a projected shortfall in housing stock. It will be interesting to see it all unfolds.
Either way Ryman’s new retirement village is a welcome project for the region.
April 01 2010 06:58 am | regional