A new Pathlab regional diagnostic laboratory and carpark was one of the major commercial consents issued last month, valued at $8m. Photo / John Borren
A new Pathlab regional diagnostic laboratory and carpark was one of the major commercial consents issued last month, valued at $8m. Photo / John Borren
Building consents hit a nine-year high last month with more than $66 million worth of new projects approved in Tauranga City - more than double the amount approved in the same month last year.
New residential builds made up $37.2m of approved consents, up from $26.3m in June 2014, whileresidential alterations and additions jumped from $774,123 in June 2014 to $3.3m last month.
Commercial consents were the stand-out increase with $25.6m worth of projects approved last month, up from only $3.7m for the same time last year.
Master Builders Tauranga president Johnny Calley expects high building consent figures in the coming months, with a lot of good commercial projects currently in the pipeline.
A new Pathlab regional diagnostic laboratory for the hospital and Bay community was one of the major commercial consents issued, valued at $8m.
The project was halfway through development and expected to be finished by January 2016, according to information provided by Pathlab. Its carpark would provide 45 new spaces.
The new 5000sq m Kmart store being built in Bethlehem Town Centre was the biggest commercial consent issued last month, valued at $9.455m.
The new Kmart store being built in Bethlehem Town Centre was the biggest commercial consent issued last month, valued at $9.455m. Photo / John Borren
Priority One projects manager Annie Hill said it was an "absolutely huge month".
"We've been taking these figures since 2003 and this is the highest value of consents since August 2006."
Priority One compared the total consents approved in the first six months of each year and this year was the highest since 2004, she said.
"I think the Auckland market is definitely having an impact ... we're being seen as an increasingly viable city to live and work in."
The healthy economy meant people now had more cash to work with, so people who had wanted to renovate during the recession now could.
Master Builders Tauranga president Johnny Calley, of Calley Homes, said business had been busy with both residential and commercial builds.
"All of our members are definitely really busy and it's a trend that's been building for some time, about 18 months."
Mr Calley said future prospects for the industry were also very positive with a lot of good commercial projects in the pipeline. He expected that to be reflected in building consent figures in the coming months.
Commercially, the Tauranga Crossing Shopping Precinct in The Lakes was now receiving tenders from contractors and would be a great opportunity for local companies, Mr Calley said.
Certified Builders Western Bay of Plenty president Mike Way, of Way Builders, believed the location of new land in outlying suburbs coupled with a healthy economy was driving the increase in residential alterations and additions.
"I think people are starting to get more alterations because people tightened their belts a few years ago during the Global Financial Crisis and now they can get that done."
Kitchens and bathrooms were the most common renovations he was doing but he got the odd call from investors who wanted to add rooms to a house to increase what they could charge for rent.
Tauranga Chamber of Commerce chief executive Stan Gregec said it was a combination of factors pushing up the value of building projects.
"We're clearly seeing the effects of available commercial land combined with a strong sense of confidence in Tauranga's business outlook and growth. This is a great time to be investing in the local economy."
Tauranga Mayor Stuart Crosby said it was an incredible monthly figure and great news for the city.
"We've been on a steady increase for the last 14 or 15 months. Those building consent figures create a lot of employment around the city and create a lot of confidence as well."
He said the high-performing month was also reflected in other figures reported in the Bay of Plenty Times such as a 29 per cent increase in job adverts on Trade Me and the Bay of Plenty having the strongest-growing regional economy for the past year.
Major consents approved June 2015 (value over $1m)
