Blazing-hot year for Tauranga's construction industry

A$2.5 million company headquarters and 20 beach villas are the stars among the city's latest building projects worth more than $60million.

Tauranga's red-hot construction industry continues to sizzle with August residential and commercial building consents totalling 254 and worth a total $61.79m, new figures show.

NZ Certified Builders Association (NZCB) received building consent for a $2.5m site redevelopment for its new national head office at 10 Marsh St, chief executive Grant Florence told the Bay of Plenty Times.

Mr Florence said the project reflected the continuing positive sentiment in the construction sector.

"The consent numbers reflect the overall strength of what is happening here," he said.

NZCB currently shares space at 102-104 Spring St, and he said the association had decided it made sense to have a home of its own.

"Our board has reviewed a number of times whether Tauranga is the right place to have a national office and each time has come up with the same decision."

Mr Florence said the site had been acquired some time ago and the association was planning a two-storey building around 560sq m, with site works expected to start this month.

Rebecca Perrett, Tauranga City Council's general manager, environmental services group, said NZCB's move was a positive sign. She added that the site had some engineering challenges because the area was former marshland. "What we are finding is that as one new building comes on board, it revitalises these areas, which is what we need to happen."

Priority One acting chief executive Greg Simmonds also welcomed NZCB's decision to build in Tauranga.

"It shows the continuing confidence in the regional economy and our attractiveness and competitive advantages of as a destination for businesses."

The August data also included three consents totalling $4.36m at 210 Maranui St, Papamoa, for 20 villas, which are part of Generus Living Group's 227-villa retirement development Pacific House Village.

"We've seen this huge influx from Auckland," said Generus development manager Jim Mora. "We're seeing unprecedented demand. We've got 70 contracts in front of us of unbuilt houses."

Ms Perrett said August's $61.79m total - made up of $45.97m in 121 residential consents and $11.54m in 37 commercial consents - was lower than the May yearly peak of $66.17m in consent value.

"Our conversations with the building industry have all indicated that we are going to be tracking upwards and we're seeing some of those numbers already coming through in September. We're not anticipating this to flatten back down. What we are seeing is more of a ramp-up."

Tauranga mayor Stuart Crosby said the consent figures were again an indication the construction industry was still going strong.

"There are no indications that's going to slow down. With low interest rates, confidence in New Zealand and in Tauranga City will continue. What I would like to see is sustainability.

"I believe it will continue well into 2018, at a minimum."