A multi-million-dollar coolstore under construction at the Tauriko Business Estate was one of the highest value consents granted by Tauranga City Council during October. Photo / John Borren
A multi-million-dollar coolstore under construction at the Tauriko Business Estate was one of the highest value consents granted by Tauranga City Council during October. Photo / John Borren
The surge of new houses being built in Tauranga continues to push the value of consents to record-breaking levels, putting pressure on council resources and delaying some purchasers' plans for completed new homes.
In Tauranga, a 61 per cent increase in the value of new home consents between October thisyear and the same month last year was even higher than September's 48 per cent spike.
Consents totalling $53 million were granted for new homes in October, compared with just $20.5 million in the same month last year.
The total value of Tauranga consents during October - including all residential and commercial - totalled $72 million - more than double the $35 million during the same month last year. New home consents in the Western Bay of Plenty rose from $9 million in October 2014 to $12.5 million in the same month this year, with total consents rising from $13.5 million to $18.5 million.
Tauranga City Council head of inspections Nigel Mogford said the council was training three staff to process Code Compliance Certificates on new homes - a role previously held by building control officers.
Since June, the number of certificates being issued within the required 20 days had risen from 69 per cent to 72 per cent in October.
Regional manager of Classic Builders, Paul Taylor, said the delay meant extra paperwork for the purchaser, who needed to sign a form under the Building (Forms) Regulations 2004 which allowed them to move into the property prior to the certificate being issued.
In some cases the hold-up left new homes - which were unable to be on-sold or rented out without the certificate - sitting empty for up to four weeks.
However, given the current building boom, Mr Taylor said 72 per cent of certificates being issued within 20 days was not unexpected.
Senior registered legal executive at Tauranga firm Harris Tate, Brierley Conquer, did not recommend purchasers move into a property prior to a certificate being issued. "It is now an offence for a residential property developer to complete the sale of a property, or allow a purchaser to take possession of a property, before a certificate has been issued."
Should they wish to contract out, this then raised the issue of whether the mortgagee agreed to the loan advance on a property without a certificate, whether the insurance company would insure it and whether early possession of the property would trigger any clauses or warranties under their contract with the property developer.
A "look before you leap" approach was required, she said.
Head of economic development agency Priority One, Andrew Coker, said the spike in consents reflected the level of confidence in the Bay.
Mr Coker said growth was happening faster now than prior to the global financial crisis with people willing to invest.
Tauranga Chamber of Commerce chief executive Stan Gregec said the consent figures were more proof that Tauranga was still humming.
The rise in residential consents supports Statistics New Zealand's latest population estimates which revealed the population of Tauranga grew from 121,800 people in June 2014 to 124,600 in June 2015, making it one of the fastest growing areas in the country.
Clare and Jeremy Fursdon with their daughter, Ava, 4 months, and Conner, 3.
Photo / Andrew Warner
Building own home 'no-brainer' for growing Western Bay family
Clare and Jeremy Fursdon are among the hundreds of families contributing to the Western Bay's building boom.
The couple, who previously owned a home in Papamoa, searched extensively for an existing house that suited their growing family's needs, before deciding to build.
"We spent two years looking for an existing house and there was just nothing. Some houses came pretty close, but not close enough," Mrs Fursdon said.
They found the new build with Generation Homes was a way of getting what they wanted - which included some section for their two children - while proving cheaper than buying an existing home.
They paid less for their 4-bedroom house, than comparative homes, built in the 70s or 80s, priced around $500,000.
"It was kind of a no-brainer really. The only downside was we were gypsies for six months (while the house was built)."
