The leaders of Australia and NZ - PM's Kevin Rudd and John Keys - have moved a step towards a common market which will reduce the cost of flights between Australia and NZ. The steps to be taken in the next year will see trans-Tasman customs and immigration abolished, so an entry into NZ is essentially an entry into Australia. This will spell a travel revolution for Australia & NZ, a property boom in areas, but it could also be expected to cause a flight of more people and jobs from NZ (in general). It will mean more tourism for NZ though. The implication is clear:
1. NZ Property around airport hubs like Christchurch, Palmerstown North, Dunedin, Wanganui, Hamilton are going to get a lot more expensive.
2. Queenstown-Wanaka are going to benefit the most because of its tourist icons and restricted land because of its mountainous geography.
The operating costs on trans-Tasman flights will fall by at least 30% and expect an increase in the number of new routes being flown. Jetstar says the savings for the airlines will be about $60 a passenger one-way.Typical prices can come down from $200-$210 to $140-150 [one-way]. Even greater reductions are possible by using the smaller airports. New destinations could include Avalon (Melb), Newcastle and Hamilton in Australia side and Hamilton, Palmerston North and Queenstown in NZ. The implication is that NZ property is looking very attractive for Australian buyers.
The common market is motivated by NZ's desire for greater access to the Australian market, as well as the airline's desire to stimulate travel by removing the government imposts (extra airport charges and government taxes) that don't apply to domestic travel.
Bruce Buchanan, the CEO of Australasia's low-cost carrier, Jetstar, has been a leader in the campaign to integrate the two countries aviation industries.
-------------------------------------------------1. NZ Property around airport hubs like Christchurch, Palmerstown North, Dunedin, Wanganui, Hamilton are going to get a lot more expensive.
2. Queenstown-Wanaka are going to benefit the most because of its tourist icons and restricted land because of its mountainous geography.
The operating costs on trans-Tasman flights will fall by at least 30% and expect an increase in the number of new routes being flown. Jetstar says the savings for the airlines will be about $60 a passenger one-way.Typical prices can come down from $200-$210 to $140-150 [one-way]. Even greater reductions are possible by using the smaller airports. New destinations could include Avalon (Melb), Newcastle and Hamilton in Australia side and Hamilton, Palmerston North and Queenstown in NZ. The implication is that NZ property is looking very attractive for Australian buyers.
The common market is motivated by NZ's desire for greater access to the Australian market, as well as the airline's desire to stimulate travel by removing the government imposts (extra airport charges and government taxes) that don't apply to domestic travel.
Bruce Buchanan, the CEO of Australasia's low-cost carrier, Jetstar, has been a leader in the campaign to integrate the two countries aviation industries.
Andrew Sheldon www.sheldonthinks.com
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