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Home / Bay of Plenty Times

Building consents down in Tauranga but boom not slowing

By Allison Hess
Junior reporter - digital·Bay of Plenty Times·
11 May, 2017 09:23 PM4 mins to read

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Tauranga Master Builders Association President Johnny Calley. Photo/George Novak.

Tauranga Master Builders Association President Johnny Calley. Photo/George Novak.

Building consents valued at more than $240 million were issued in Tauranga for the first four months of this year - a new record.

Figures released by Priority One showed $57.7 million last month, which was down on March.

There were 198 consents, compared with March's 251 and included a consent for the complete upgrade of a CBD building which has stood empty for almost two years.

In the Western Bay there were 107 consents issued, ahead of March's 94 but valuing in lower at $21.3m compared to March's $22.5m.

However, the total value of consents between January and April was higher than any other year - showing the city's building boom isn't quite over yet.

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Consents valued at $246.8 million were issued for the first four months of the year, up 1.3 per cent from the first four months of 2016 when $243.5 million were issued.

Priority One projects manager Annie Hill said taking into account all the first four months of this year there had not been any slow down in Tauranga.

"In fact they are tracking extremely well considering 2016 was a record year."

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She said as there have been two record years in a row, there might not be "great" growth during 2017.

"But it's not possible to judge trends from one month - a longer term view is required."

Ms Hill said consent numbers were down in April owing perhaps to issues like market fluctuation in lodging consent requests or that there were three short weeks to accommodate Easter and Anzac Day.

Tauranga Master Builders Association president Johnny Calley said at some point the boom would consolidate.

"Things can't go up forever, at some point it has to come down."

He said a consolidation of the market would not be a bad thing for the building industry in Tauranga - which was under extreme pressure currently.

"We don't want to see consents dip or decline but consolidation would have positive impacts in terms of pressure easing and contractors and builders having more time to deliver products."

Mr Calley said the next four to six months would give a better indication of the direction of the market.

Commercial consents in Tauranga valued less than last month, coming in at $17.9m. The highest commercial consent issued for April was $3.3m for the refurbishment of Fraser Cove Countdown.

The empty office building on Grey St, which sold for a bargain price in 2015 due to earthquake concerns, was given consent for a fit-out and seismic strengthening valuing $2m.

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Waitomo Properties bought 35 Grey St in 2015 for $1.1m, down from the nearly $10m it was bought for in 2006.

Managing director Steve McLennan said the previous owners were told it was "stuffed" after being given a five-page IEP report.

After doing a detailed geotechnical and structural report for the past year and a half Mr McLennan was spending nearly $1m on earthquake strengthening and the other $1m upgrading the building.

"I hate the idea of wasting structures and assets that can be saved.

"We're stripping it back to its basic elements and pretty much starting again - it's going to have new air conditioning, two new lifts, new cladding, new windows, showers and bike lockers," he said.

Already Mr McLennan said he had interest from businesses including an architectural firm from out of town, law firms form Hamilton and businesses outside the CBD who wanted back in.

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"We've only had consent for a month and we have a design issue to resolve but in the coming weeks we will be in a position to be making timeframes for when it will be ready.

BUILDING CONSENTS
Tauranga
Total value for April: $57.7m
Total value for March: $77.2m
Total value for April 2016: $62.4m
Total number of consents for April: 198
Total number of consents for March: 251
Total number of consents for April 2016: 203
For the first four months of 2017 consents issued were 1.3 per cent higher than in 2016.

Western Bay
Total value for April: $21.3m
Total value for March: $22.5m
Total value for April 2016: $19.4m
Total number of consents for April: 107
Total number of consents for March: 94
Total number of consents for April 2016: 158
Issued the highest value of single dwelling consents this month since July 2016 and the highest number since October 2016.

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