Ross Stanway, chief executive of Realty Services, which operates Eves and Bayleys Real Estate, said buyers were turning to building or were making alterations to their existing home if they could not find anything suitable on the housing market. "Mortgage rates for first home buyers are very attractive at the moment, and there are very competitive land and home packages." Mr Stanway said.
"In terms of future development, it is a bit of a chicken and egg scenario. Developers now wisely tend to invest when they know there is a definite market for the end product. It's been a learning curve for the seven-odd years after the global financial crisis, but we are seeing a great positive catch-up and developers are investing in confidence in a known market."
John Stevens of John Stevens Homes said his crew had been booked out until June next year.
"It's been flat out. We've just completed three and have another one on the go now. But there is not much land around, that's the biggest problem in Rotorua. I have people ringing me up at least once a week to ask if I know of any sections," he said.
Mr Stevens said action needed to be taken sooner rather than later to free land up.
"The demand is coming, if we don't do something soon we will miss it."
Rotorua Registered Master Builders president Bill Clement said work had improved compared to last year.
"I'm working on a designer house at the moment. One or two of our members are doing that as well, so we are sort of seeing a few jobs at the higher end of the market," Mr Clement said.
"Things have been picking up overall."
Mr Clement said commercial building work also had risen, with the planned Countdown on Fairy Springs Rd and for Lynmore Junction.
"But we need more development for sections. There is land there, but it is about going through the [development] process and unfortunately it is a bit long-winded at times."
"At the moment [the increased work] is refreshing and hopefully it will kick on with the warmer weather."
Meanwhile, Andy Fuller is looking forward to moving into his new four-bedroom home on a two-acre (0.8 hectare) section in Brunswick Park, Tikitere. "We had looked at a lot of houses over the years and, when this section came up, we put our house on the market and it was gone in three days," he said.
"The area has amazing views of the lake and we wanted a house that was purpose-built for us," he said.
"A lot of stuff wasn't moving in Brunswick Park before but in the last six months everything is moving."
- Additional reporting by Simran Kainth, NZME
