$41 million poured into new buildings

The Pyes Pa Shopping Centre development will begin stage one of its construction next week. Its building consent was approved by the Tauranga City Council last month.

The total value of consents approved for new buildings in Tauranga exceeded $41 million last month - the highest recorded figure for the month of November since 2007.

The trend follows on from October when Tauranga signed off more than $35 million worth of building work. Local developers say these figures reflect increased activity.

November figures show 176 consents were issued including two substantial commercial projects - the Pyes Pa Shopping Centre (stage one - $4.5m) and Pacific Coast Retirement Village ($1.2m).

Thorne Group owner Bob Thorne said it "was running at 40 to 50 per cent ahead of what we did last year".

Confidence was so high it had fast-tracked stage five of its Urban Ridge subdivision on the boundary of the "Bethlehem triangle". Mr Thorne said 25 per cent of buyers came from Auckland. "We bought it forward earlier because of the demand."

Carrus Corporation general manager Scott Adams said it had already sold 33 per cent of the 150 lots it was developing at The Lakes this summer despite only releasing some of them.

Builders were also paying for sections earlier, indicating strong demand for housing, he said.

"We have sold 320 lots in the past two-and-a-half years. Approximately 40 per cent of builders that had 12 month interest free terms have settled early because of the housing boom."

Statistics reveal in November 2012, 169 consents were issued by council, valued at $30.5m compared to 176 issued last month, Mr Adams said.

"I find that very interesting as the average build value has increased by thousands."

Classic Builders director Peter Cooney said its turnover was up 40 per cent while CBC Construction was up about 20 per cent for 2014.

Terry Scott, of Redline Holdings Ltd, said all the civil works were almost complete at the Pyes Pa Shopping Centre.

Building would start next week, he said.

"It is going to be positive for the community and there will be a lot of people employed on site."

The development would include a health centre, pharmacy and restaurant with a major supermarket brand and privately-owned aquatic centre anchoring the project.

Tauranga Chamber of Commerce chief executive Dave Burnett said the economy continued to move in the right direction.

"It really just conveys what is happening in the region in terms of growth.

"That is reinforced by the number of businesses coming into town.

"We are going forward."