Rotorua's depleted housing stock is set to get a boost with the announcement of a 36-section subdivision out in Eastside.

Arohanui Parade Subdivision, situated off Vaughan Rd, will be marketed by LJ Hooker in the next two to three weeks and will fill an otherwise "pretty empty area".

It's the fourth subdivision to be announced this year, following the 24-section Baxendale Development, the 89-section Sunny Downs subdivision and a 33-section subdivision in Pukehangi.

The Baxendale sections sold in less than 90 minutes at auction in May.

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"Those sections sold quickly and people missed out so that shows the demand is still there and if sections are available, people will buy them," LJ Hooker Rotorua principal Malcolm Forsyth said.

The 36 sections in Arohanui Parade Subdivision will be sold through a tender process.

Sections in the new Arohanui Parade Subdivision off Vaughan Rd. Photo/Supplied
Sections in the new Arohanui Parade Subdivision off Vaughan Rd. Photo/Supplied

"It's slowly coming to fruition. It's been on the go for quite some time but it needed to be done as the shortage of available sections is putting a hold on Rotorua.

"It has been fine for many years but now more and more people are looking at Rotorua as an attractive place to live and we need that capacity and opportunity to grow."

The announcement comes after the signing of a Special Housing Accord earlier this month which aims to help the building of 900 new houses in Rotorua over the next four years.

LJ Hooker's Debbie Smith said the development of the subdivision came down to the perseverance of the developer, John O'Brien.

"It's not easy doing subdivisions in Rotorua but John saw the potential of the area and saw the need in Rotorua."

Ms Smith said lake and rural views would be a drawcard for potential buyers, as would be the quiet, off-road location.

"It's a haven in the mid to high price range."

Mr O'Brien, who has been a developer "all his life" said he had dealt with many councils and found Rotorua's to be "eager to help".

"The council here bent over backwards to make everything work, to the point where they were calling me to give me the hurry up."

This will be his first subdivision in Rotorua.

"I was looking around, trying to find the right block, and saw what Rotorua not just needed but also had to offer."

Ms Smith said there was significant meaning to the subdivision's name, Arohanui.

"Rotorua is predominantly known for the Maori cultural heritage of the area.

"This land was owned and farmed by a local family who loved it and have slowly sold off the land to benefit the local community.

"It is their aroha and John's labour of love that has seen the inception of this development Arohanui - which means 'big love'.

"I believe the local community and the Iwi will embrace the name," Ms Smith said.

Rotorua mayor Steve Chadwick said she was thrilled by the announcement of another subdivision.

"It reflects certainty and confidence in our local market.

"I was also pleased to hear the great service from our planning team."

For more information about Arohanui Parade Subdivision, contact Debbie Smith on 027 454 2115 or dsmith@realtylink.co.nz.