The value of building consents has set a new record for the year to August with $619 million worth issued in Tauranga.

Figures from Priority One show it was the biggest increase over an eight month period since the economic agency started collaborating data in 2004 - last year at the same time it topped $600m.

Projects manager Annie Hill said the increase was significant and great for the local economy.

''The construction sector has seen extremely strong growth since 2012, so it is impressive that there is still room for growth in the market.''


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Last month consents for the city were $71.7m, down from $79.8m in July, but residential consents for August had surged ($42m) and included 52 apartments on Girven Rd that were part of the Salt residential village development.

''It is great to see this type of housing created in the city, with more intense developments creating a larger range of choices for home buyers and providing a more efficient use of land for the city.''

Meanwhile, the largest commercial consents were for a new Metlife 40 unit care home at Pāpāmoa Beach ($6m) and an extension to a community pavilion ($4.1m).

Tauranga Chamber of Commerce chief executive Stan Gregec said the figures ''do not tell us anything new''.

"We know commercial construction has gone gangbusters here in Tauranga. We expect the building boom to continue for some time – even though residential construction has slowed a bit from the giddy heights of two or three years ago."

Tauranga mayor Greg Brownless acknowledged transport projects needed to catch up with the building boom.

The Government needs to realise the importance of roading projects including the Northern Arterial Link, Tauriko, Pāpāmoa and Ōmokoroa to Bethlehem as ''our development is still ripping along''.

Master Builders Association Tauranga president Mike Bell said his company was flat stick and it had work booked for the next 12 months.

''We are chocka and all the good guys that have been around for a while have plenty of work into the foreseeable future.''


However, a shortage of labour continued to be a problem.

''If I could get three experienced carpenters I would hire them tomorrow. It's hamstringing jobs and has slowed down the amount of work we can do.''

By the numbers
* August building consents for Tauranga
* 218 consents valued at $71.7m compared to 242 in August 2017 valued at $106m
* August building consents for Western Bay
* 104 consents valued at $16.8m compared to 133 in August 2017 valued at $18.8m

$50 million development under way

Construction is about to begin on 52 apartments at Mount Maunganui that are part of the Salt residential village on Girven Rd. Artists Impression/Supplied
Construction is about to begin on 52 apartments at Mount Maunganui that are part of the Salt residential village on Girven Rd. Artists Impression/Supplied

Construction of a $50 million boutique residential village, on the former Golden Grove Holiday Park campsite at Mount Maunganui is underway.

Salt, which was on prime land in Girven Rd, would include 52 architecturally designed apartments, 19 luxury townhouses, shared green spaces, a cafe and New Shoots childcare centre.

Co-developer Paul Spillane from SNG Investments Ltd told the Bay of Times the project was ''exciting'' and expressions of interest had exceeded expectations.

The apartments which ranged from one to three bedrooms with unique crafted interiors had almost sold out with only seven left that would be marketed by Colliers International Tauranga.

All the ground and civil work for the apartments, which would kickstart the development, were completed last week, he said.

The project was approved under the Special Housing Accord in 2015 and Spillane said its main focus was to create quality homes to meet rising demand in Mount Maunganui.

''We wanted to incorporate great design concepts to redefine contemporary living. I know it has taken us a while to get where we are today but we weren't prepared to compromise.''

SNG was also responsible for the 850 Cameron Rd complex and Basestation in Durham Street and Spillane said Mount Maunganui and Tauranga was the place to be.

''We love it here and are very fortunate.''

Colliers Internal Tauranga director Grant White said developments of Salt's size and quality would always be hard to replicate in the Mount Maunganui area.

''This is due to scarcity of available land close to all the amenities and the beach which is why Salt has sold so well.''