The ripple effect from Auckland’s surging housing market is having a significant impact on house price growth in both Hamilton and Tauranga/Mt Maunganui...
...where prices were up 21.9% and 21.8%/25.3% respectively in October 2015 compared to the same month in the previous year.
This is fuelling a sharp increase in new residential subdivision releases to satisfy demand, as well as rising levels of housing construction activity both of which are adding positively to economic activity and population growth. The flow-on to commercial and industrial property markets will become more evident as we head into 2016.
In both the short and long term Hamilton and Tauranga will continue to be the major beneficiaries of key road infrastructure projects recently completed and planned. These will reduce valuable travel times and congestion between the centres and Auckland and improve the movement of freighted goods. This, coupled with the expansion of port activities in Tauranga and the expected commencement soon of development activity on the first stage of the landmark inland freight port in Hamilton (Ruakura), should act as major economic drivers going forward.
An increase in new developments throughout Hamilton over the past few months has given the city’s commercial and industrial sectors a boost and along with further refurbishment of older CBD office stock, is leading to increased tenant activity.
Genesis Energy has recently announced plans to consolidate its Hamilton operations in one location with plans for a new office tower at 94 Bryce Street. The site currently houses an old Countdown supermarket on land owned by the Hamilton Council. Construction of the new premises is planned to commence in mid 2016 with completion scheduled for the first half of 2017...read more.
Booming kiwifruit exports and an expansion in port activities is underpinning demand for industrial property in Tauranga. Industrial building consents in the broader Bay of Plenty region have doubled over the past 12 months to September 2015 with much of the activity concentrated around storage facilities. Demand is being driven in large part by owner occupiers.
The recent completion of the Tauranga Eastern Link (TEL) road has boosted demand for space at the nearby industrial estate of Papamoa, where vacancies have fallen sharply. Longer term the TEL should act as a major catalyst in opening up new tracts of land for further development...read more.
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