Nearly half of the $46.6 million in building consents issued for new residential builds in Tauranga last month were for multi-unit developments and apartments.
Priority One's latest building consent report for September showed $46.6m was issued for 75 new residential builds, which included $19.1 million for six multi-unit developments and apartments.
The largest building consent was $10 million to develop level one and above of the $30m Latitude Apartments on Park St.
Veros Properties Services development manager Craig McCormick said the developers identified a need for a high-quality apartment building on the city's fringe.
He said apartment living was a way of downsizing but an alternative to a retirement home. However, a number of young professionals also wanted keys to an inner-city apartment to be closer to work.
"It is a lock-up-and-leave type scenario, easy-care living," he said.
Veros Properties Services was undertaking the development for Latitude Apartments Limited in partnership with Form Construction.
The $30m development was expected to be completed by July 2019.
Latitude's marketing agent and Ray White Tauranga director Ian Grindle said 23 of the 28 luxury apartments had been sold.
Grindle said the prices ranged from $600,000 for a one-bedroom apartment to $2.4m for one of the penthouses.
Buyers were from Tauranga and elsewhere, including Auckland, Waikato and Australia, he said.
"It has been really well received. It's been around 12 years since there has been a significant apartment development in Tauranga on this side of the bridge."
He said a minimum of 60 people were expected to be living in the apartment, which would breathe more life into Tauranga's CBD.
Priority One communications and projects manager Annie Hill said the city was maturing when it came to people's housing choices.
"The influx of people that have lived in other cities in New Zealand and overseas and experienced other housing typologies means that apartments and duplexes are becoming much more popular," she said.
Hill said 1010 new single dwellings and 33 apartments or multi-unit developments had been built in the last year.
Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys said the city was growing - and fast.
"That confirms the optimism that Tauranga is developing into a bigger city," he said. "Over the last number of years it has gone from a village to a city."
Anderson said an interest in commercial property such as inner-city apartments was also positive for the CBD.
"If you bring people into the city it creates more momentum," he said.
Tauranga Chamber of Commerce board chair Ron Devlin said more apartments was exciting for businesses in the CBD.
Devlin said expansions to commercial buildings in Tauranga, such as Bayfair Shopping Centre and Tauranga Crossing, meant a need for extra residential property.
"It is a flag to the city leaders that we need to make sure we have good recreations for citizens such as walkways," he said.
OneRoof editor Owen Vaughan said the increase in new stock will ultimately benefit property values in Tauranga.
"New developments will serve to accommodate the city's rising population, but also create opportunities for movement within the market," he said.
Vuaghan said apartments will appeal to two very different segments of the market – first home buyers and downsizers.
"You can expect higher value developments will be of interest to baby boomers within the city and Auckland."
Multi-unit/apartments consented in September:
- Latitude Apartments Limited: 28 apartments, Park St
- The Celt Saxon Corp Limited: 10-unit residential townhouse development, Tawa St
- TVAB Limited: Two single-level two-bedroom homes, Moffat Rd
- SNG Investments Limited: Two two-storey three-bedroom townhouses, Girven Rd
- SNG Investments Limited: Five two-bedroom two-storey townhouses, Girven Rd
- Chisholm Hugh Roderick: Two-storey apartments, Marine Parade
Source: Priority One