Apartment living proves popular: Tauranga to get 184 new apartments worth total $60m

The number of apartments being built in Tauranga has more than quadrupled as people look for alternative living options.

Last year, Tauranga City Council issued the highest number of building consents for new multi-unit developments since Priority One's records began in 2005.

One hundred and eighty-four apartment units in 35 buildings - costing $60.2 million in total - were consented in 2018, compared with $12m for four multi-unit developments consented in 2005.

Already this year, seven small multi-unit developments have been issued consents totalling $6.14m.

The $10m stage 2 of the luxury Latitude Apartments on the corner of Cliff Rd and Park St was consented last year, while construction for a three-storey apartment block on Girven Rd was also given the go-ahead.

A $4.1m 12-unit townhouse development on Percy Rd and a $4m two-storey apartment on Marine Parade were also approved.

Priority One projects manager Annie Hill said strong development of large apartment blocks in Mount Maunganui between 2006 and 2008 came to a halt during the Global Financial Crisis when land for high rise developments was exhausted.

However, she said there was a resurgence in the building of multi-unit developments from 2015.

"The development of inner-city apartments is a sign of the maturity of a city," Hill said.

"We are at a stage where these are becoming increasingly popular, particularly in light of migration of people from Auckland to Tauranga."

Hill said there was a shortage in the more affordable one to two bedroom apartments.

"The development of apartments in Tauranga's city centre also adds an additional housing choice, both in terms of style and size, for people of all ages and stages in their lives," she said.

Valocity director of valuation and innovation James Wilson said there had been a recent increase in the number of apartments or attached townhouse developments in Tauranga.

"Such property types offer a way to build higher density residential property but still appeals to the market," he said.

"Such housing options in Tauranga offer a comparatively more affordable entry-level and also generally offer the benefit of reduced maintenance and upkeep costs as these are often covered within body corporate fees."

Wilson said the number of apartment sales had remained consistent for the past 12 to 18 months, but sales volumes in more traditional housing options had reduced.

"Given the comparable affordability of apartment stock in the area, such accommodation naturally appeals to first home buyers," he said.

However, he said first home buyers should take time to understand the implications and obligations of owning an apartment.

General manager of Tremains Bay of Plenty and Waikato, Anton Jones, said smaller houses, in general, were becoming a trend.

"There is becoming a bit of a lack of land out there and instead of spreading out we are going up," he said.

Bayleys and Eves Realty chief operating officer Heath Young said access to "world class" beaches and other harbour amenities were a huge drawcard for apartment buyers.

Young had noticed an increase in people buying apartments, particularly in the Mount where people were securing apartments in newly-built developments near Blake Park, which provided great buying opportunities in a "tightly-supplied market".

Almost all of the 71 new apartments and townhouses being built as part of the Salt Development in Mount Maunganui have been sold.

The development of 52 apartments in the $50m boutique residential village on the former Golden Grove Holiday Park campsite on Girven Rd is set to be completed late this year.

That will be followed by 19 luxury townhouses and the New Shoots early childhood centre and cafe in early 2020.

Developer Paul Spillane said there was a big demand for apartment living, particularly with older people.

Grant White of Colliers International Tauranga said there are only a small number of one and two-bedroom apartments left to sell.

"The lifestyle offered by apartment living is attractive to many people," he said.

White said people were attracted to amenities and services being within walking distance and the low maintenance living and "lock and leave" ability.