New sections are finally set to hit the market in Rotorua - with a new development of 24 expected to attract big interest.
After more than two years of planning the sections in the latest stage of Baxendale will go up for auction next month.
The demand for more sectionshas been a hotly debated topic with builders repeatedly saying the lack of sections in Rotorua has caused issues as people wanting to build new homes struggled to find land.
The new development, by Rotorua property company Baxendale Developments, includes 10 sections bordering the Utuhina Stream. Three of the lots are accessed off Pukehangi Rd while the remaining 21 come off Baxendale Dr.
Beth Millard from Bayleys Rotorua said the sites would be auctioned back-to-back and the agency was taking the unusual step of not accepting any offers ahead of the May 18 auction.
"Auctioning so many sections consecutively is a well considered move for the vendor, this process delivers a fair, clean outcome," said Ms Millard. "When market demand is that pent up, the best and fairest way to determine true value is by auction... letting buyers set the benchmark for where they see worth."
Under the hammer: Beth Millard from Bayleys Rotorua is set to market 24 sections at Baxendale which will go under the hammer next month. Photo/Ben Fraser
She said she wasn't aware of any other subdivisions of a similar scale or standard underway.
Ms Millard expected all the sections to sell at auction.
"Since 2015 though, the availability of sections on any degree of scale in Rotorua has been non-existent. It's taken some two years for developers to catch up, and in that time values have risen by nearly 20 per cent," said Ms Millard.
"That is another reason for using auction rather than a set price sale method."
"With the Baxendale subdivision sections being the first to come on to the market in the city's current population and economic growth spurt, the buyers of those sites will be at the front of the queue for submitting their building consents to the council, and will consequently be the first to be able to lock in building contracts."
Rotorua mayor Steve Chadwick said it was great to see the subdivision hitting the market.
She said there had been several smaller subdivisions but this one was a big one and had been a long time coming.
Mrs Chadwick said there was another consent being processed at the moment for a subdivision in Collie Dr.
She described the Baxendale subdivision as "substantial" in a beautiful location.
Where people could buy houses was a constant question both she and local MPs were asked, she said.
Mrs Chadwick said the council had done its bit by getting the district plan completed and operative as well as removing development contributions.
"Since [the district plan became operative] we have had quite an increase in inquiries and pre-application consents."
She said the council couldn't tell developers when to develop, but said they were expecting to be quite busy this year.
"We have the district plan right. That was the top priority and now it's that nimbleness as much as we can with the planning and consenting."
Trevor Newbrook, who spent a decade in the building industry and has been outspoken about the need for sections, said he expected the Baxendale sites would be snapped up but believed more were still needed.
"It is obviously a positive thing but we need for more Rotorua to grow."
He believed the council should be going and knocking on developers' doors to see how they could get the developments to progress.
Master Builders' Association Rotorua chairman Bill Clement said the new sections were a good start but the city needed more across the various price points.
"I think it is a step in right direction."
Baxendale subdivision 24 sections available. To be auctioned back-to-back on May 18. Open days are being held on site on four consecutive Sunday mornings from April 23 - May 14, between 11am and 12pm. Sections range in size from 686 sq m up to a 'lifestyle block' type property of 4636 sq m.
