It’s no secret that Tauranga is a popular place to reside. With its strong economy, leading lifestyle and iconic beach, it has increasingly been called home in recent years by Aucklanders looking for a change and new migrants bypassing the bigger cities.
Over the past five years, Tauranga’s population has grown by 15,000 people. And in the next four years Statistics NZ projects it could increase by a further 17,000. What this means is a shortfall of up to 5000 homes in the next decade. What can be done about this?
One solution is to make land available for development as Tauranga. Big plans for development in growth areas like Te Tumu, Tauriko West and Ōmokoroa are on the horizon, but are some time away.
And with the Special Housing Areas about to expire in September, an increase in future supply is back in the hands of developers, who now have even more reason to look at providing new homes.
And what this means for those who already reside and own property in Tauranga is that the balance of supply and demand will tip upwards on the demand side, theoretically increasing house prices.
There is good news on the horizon as the council has agreed to move ahead with construction of a $9 million storm water facility in Pāpāmoa. Once completed, this will enable the build of 100 new homes in the Wairakei area by July 2020 and the establishment of a town centre.
Over the next few years, private developers and homeowners with full sections that can be subdivided have a strong opportunity here. We’re only seeing demand for homes increase and with Waikato University’s Tauranga campus moving in, it demonstrates that the allure of Tauranga continues to rise. Let’s encourage more new builds to rise in tandem!