Building boom boosts demand for workers

Tasman Aluminium's new warehouse and offices in Tauriko was the biggest commercial consent issued in March, valued at $2.175 million. Business owner Phil Coughlan checks out the new site. Photo / Andrew Warner

Residential building consents are up nearly 20 per cent from the same time last year to more than $26 million - causing a surge in demand for workers.

Ninety-three new dwelling consents were issued last month, compared with 78 in March 2014, a 19.2 per cent increase.

The estimated value of the 98 new dwellings is $26.8 million, up from $20.8 million the same time last year.

Home Builders BOP managing director Stuart Wood told the Bay of Plenty Times he estimated seven out of 10 inquiries he received for new builds came from Auckland.

"It is extremely busy, largely driven by the Auckland market."

Expats returning from a slowing Australian economy also contributed to the busy market, he said.

"Tauranga is coming of age. It's not a sleepy city any more."

Mr Wood said he had increased his staff by about 50 per cent in the past 12 months.

"It looks like it's not a quick boom either. All indications are that it will continue to be busy for at least the next 18 months," he said.

Despite the increase, Mr Wood said the industry was not yet back to where it was before the recession. "It's exciting prices are rising but it's not back to where we were."

The building figures come after the Bay of Plenty Times Weekend earlier reported the number of Bay jobs on seek.co.nz had increased 20 per cent year on year.

1st Call Recruitment general manager Angela Singleton told the paper for that article that the surge in building and construction has had a flow-on effect to many other sectors.

"We're seeing the job market continuing to grow left, right and centre. More and more people are seeing the Bay as an attractive place to live."

Commercially, construction at Tauriko's Business Estate made up four of March's six major consent, each valued at more than $1 million.

A workshop and bedroom at 104 Whiore St was valued at $1.1 million, a warehouse, workshop and offices at 201 Taurikura Drive was valued at $1.5 million, and 13 industrial units at 2 Poturi St were valued at $1.6 million. Tasman Aluminium's new warehouse and offices on Whakakake St was the biggest commercial consent, valued at $2.175 million.

Recladding of the Cascade Apartments at Mount Maunganui and a basement at 829 Cameron Rd were both valued at $1 million each.

Tasman Aluminium owner Phil Coughlan said the company needed to expand from its premises next to ASB Baypark and Tauriko was a handy location to the company's Waikato and South Auckland markets.

"It's also one of the few places in Tauranga you can get a decent lump of land for a reasonable price," Mr Coughlan said.

Tasman's expansion was a result of the busy residential construction market and he said the residential figures were "absolutely in line with what we're experiencing".

"We're riding that wave at the moment."

Rachel Emerson, commercial manager for Element IMF, Tauriko Business Estate's commercial arm, said Tauriko had proved to be a popular location for businesses.

She believed the accessibility to Waikato, Auckland and Port of Tauranga were drawcards for businesses. "I'm pleased to hear the numbers ... There's a lot going on out there."