Sections in demand in new Taupo subdivisions

A new 66-section subdivision is under development on Lake Terrace between Richmond Heights and Taupō Airport. Photo / Laurilee McMichael

After a lengthy slow patch following the global financial crisis, section sales around Taupō are again in hot demand with new subdivisions in the offing.

The newest development under way is on Lake Terrace between Richmond Heights and Taupō Airport, with pre-construction work happening at present and titles expected in mid-2017.

Licensee Terry Campbell of Campbell Realty is acting for the company Lake Terrace Developments Limited and says there's been a "very, very good uptake" of sections in the subdivision, which are priced from $245,000 upwards.

Of the 66 sections in the subdivision, 38 were sold before they even went on the open market, mostly to builders and private individuals, and five more since, Mr Campbell said.

"The beauty of these sites is they're large. The average is about 815sq m while a lot of developments are 600 to 400sq m which is small for families."

Some of the sections have views of the mountains and Lake Taupō's western bays and those along the sides and the back of the subdivision have permission to build two-storey dwellings.

Mr Campbell said the covenants on the subdivision were "pretty reasonable", including height, colour, aspect and house size, plus general council conditions and there would be a reserve along both sides.

A walkway under Lake Terrace and Pukenamu Rd will connect the new subdivision with the lakefront reserve at Secombe Park.

Mr Campbell said the demand showed there was a market for larger sections, which were in short supply around Taupō and the market had well and truly picked up.

He said while some builders were expected to on-sell as home and land packages, other buyers were looking for both holiday homes and permanent homes, and they were being sought by both locals and out-of-towners looking to move to Taupō, with some possibly commuting to Auckland because of the proximity to the airport.

Meanwhile the Taupō District Council has been asking for expressions of interest from developers for two pieces of land it has south of Taupō.

The first is between Richmond Heights and the new Lake Terrace subdivision, and the other is next to the airport roundabout.

Council commercial manager Flash Sandham says council owns a large 197ha parcel of land known as the East Urban Lands which stretches from Lake Terrace to Napier Rd and runs along the back of Richmond Heights and Waipahihi Botanical Gardens.

Part of it has already been developed as the Botanical Heights and Tauhara Ridge subdivisions.

Most is zoned for residential apart from a 1ha parcel near the airport roundabout zoned rural.

There is space for 2200 sections but the land is unserviced, with no sewerage, electricity or water, and the council is looking for developers.

"We've had a good response to the expressions of interest that closed in October - we got half a dozen responses," Mr Sandham said.

He said the next step was to go through the expressions of interest and go from there.

While the Taupō East Urban Lands plan was prepared in 2006, development of the land slowed after the global financial crisis hit in 2008 and has only recently resumed.