Dunedin fares 'comparably well' with other NZ cities through Covid pandemic

Nicole Mathewson Reporter from Dunedin News

Despite the challenges of the global pandemic, Dunedin has fared “comparably well” compared with some other New Zealand cities, according to a new report.

Dunedin's goal is to be one of the world's great small cities and it is already trending favourably compared with other New Zealand cities.

A six-month economic development progress report for the Dunedin City Council provides a progress update on the city’s goals for 2013-23, which include creating an extra 10,000 jobs and about $10,000 of extra income for each person.

The report, to be tabled at the council’s economic committee meeting on Thursday, said: “It is heartening to see that we are trending favourably against other New Zealand cities.

“Despite a very challenging period for the global economy, Dunedin is faring comparably well.’’

The report notes that employment stood at 59,016 in 2013, with the city recording 65,017 in 2021, after losing almost 1000 jobs since 2020 – the start of the Covid-19 pandemic.

Over that same period, the city’s population increased from 123,500 to 133,300.

The average annual household income also leapt from $60,560 in 2013 to $78,862 last year.

Other key indicators showed a 24% rise in new dwelling consents and a 120% increase in non-residential consents in the year ending March 2022 compared with the year before.

Over that same 12-month period, house prices increased 8.1% but there were 14% fewer house sales across the Dunedin market. Meanwhile, car registrations increased 23% and commercial vehicle registrations almost doubled to 46%.

The economic boost comes as the city renews its focus on tractional export opportunities, including the recovery of the international education sector.

The University of Otago had 1468 full fee paying international students in 2019 but that halved to 735 in 2022.

The report highlighted the large number of construction projects under way in the city, including a new hall of residence, the major Dunedin Hospital rebuild, and a new ACC building.

John Gallaher, chairman of Grow Dunedin Partnership – which includes representatives from the Dunedin City Council, Ngāi Tahu, Otago Polytechnic, and the University of Otago – said “our collective mindset shifts from initial recovery to a flourishing future”.

“The activities undertaken by our respective partners are not only laying the foundation for our city to grow and prosper but also contributing to the wellbeing of our residents, now and in the future.”

Dunedin’s economic vision was to be “one of the world’s great small cities”.

“A place renowned as a confident, competitive knowledge centre; a community where enterprise and creativity support a productive and sustainable city,” the report says.