Living in the Sunshine with Its Beaches, Attractive Residential Areas and Growing Population, Tauranga Is a Great Place to Invest, Says Monique Balvert-O’Connor
Total Page:16
File Type:pdf, Size:1020Kb
REGIONAL REVIEW: TAURANGA LIVING IN THE SUNSHINE With its beaches, attractive residential areas and growing population, Tauranga is a great place to invest, says Monique Balvert-O’Connor. TAURANGA WAS FINALLY included on thriving industries connected to the dairy “This is a the TV One and TV3 weather webcam and pulp and paper industries. POPULAR, last year, officially recognised as one of the It is home base to big name businesses VIBRANT, largest cities in New Zealand. such as Zespri, Comvita, Pingar, And, if it is economic rather than TrustPower and FIL. GROWING CITY weather patterns being predicted, then the It’s a city that opened its doors this WHERE CAPITAL forecast for this city in the sunny Bay of year to a new secondary school, while GAIN CAN BE Plenty is far from gloomy. earthworks have started at the site of MADE.” – HELEN So say those monitoring the economic another, bringing the number of secondary trends and development of this city that is schools within the Tauranga City Council BARNARD home to Australasia’s most efficient port, a boundaries up to eight. And all indications variety of emerging enterprises, thousands are that a university campus is only a few of small-to-medium businesses, and years away. VENTURE TARANAKI COURTESY OTOS H P 50 NZ PROPERTY INVESTor // JULY 2011 WWW.PROPERTYINVESTOR.CO.NZ // NZ PROPERTY INVESTor 51 REGIONAL REVIEW: TAURANGA Strong connections with the University different to the nationwide picture.” “I KNOW SEVERAL of Waikato already ensure that eight He found property prices compared to EXECUTIVES degrees can be started and completed in income “a bit on the high side”. Tauranga, and the Bay of Plenty Polytechnic “They have come up a long way over WHO HAVE BEEN also has a strong presence in this city. the last 10 to 15 years, partly due to the OFFERED VERY An average of 32 people a week move strength of demand and population Both Tauranga and ATTRACTIVE JOBS into Tauranga, where the lifestyle is a major growth.” Mount Maunganui are drawcard. Mount Maunganui – one of New He says the investment in roading built around the water, INTERNATIONALLY, beaches and a safe WHICH THEY Zealand’s most popular beaches – is within infrastructure is likely to start opening up harbour. the city boundaries. areas around town that weren’t necessarily HAVE TURNED Tauranga is a growing city with clout. as attractive to homebuyers before. That DOWN BECAUSE Andrew Coker, who heads the city’s does influence property values and is Barbecues are part of the economic development agency Priority something for investors to bear in mind, easy summer lifestyle. THEIR GROWING One, says Tauranga has a shifting Kiernan says. FAMILIES ARE landscape. Tauranga realtors say the current steady REALLY HAPPY “Our economy over the next 10 years will and stable situation means those entering HERE.” shift from one driven by population growth, or climbing the property ladder can feel to one with real depth in terms of high Tauranga is known for more confident about acquiring a good – Max MaSON value, productive businesses. good food and wine. The deal on a quality new home or investment Sebel Hotel is one of the “Tauranga offers very competitive property. newer developments in propositions for businesses.” the city. Shayne Donovan-Grammer of QV Exciting things are happening. This Valuations says with Tauranga’s sizeable The growing tourism month the Government’s ultra-fast and fast-growing population comes a pool industry is bringing broadband project kicks off in Tauranga immediately above Auckland. Overall, waiting room” mantle. Through the mid of buyers and a chance to sell, and it’s a new businesses to the and the city continues to welcome an influx while the nationwide measure of economic to late 1990s and early 2000s, Tauranga’s desirable city for those looking to build a area. Cruise ships berth in companies relocating to be close to the activity slipped 0.1%, the Bay of Plenty strong population growth featured a portfolio of rental properties. 250m from Mount Maunganui’s main Port of Tauranga and a pool of skilled and recorded an increase of 0.7%. disproportionate amount of elderly people Property manager Helen Barnard says street. semi-skilled workers. The trends report states the Bay’s opting to live in Tauranga. Today there’s a Tauranga tenants are generally looking for Relocating companies are as varied labour market perked up in the March broader mix of population. well-presented three-bedroom properties as Morgan Furniture, VNC Cocktails, quarter with the number of employed A report released by a consortium within the $280 and $350 weekly price BidVest, and IT businesses. Australian rising 3.2% to 6.6% – that’s more than of economists found migrants to bracket. Anything above $450 is considered manufacturers too are making inquiries. twice the nationwide rate of increase. Little Tauranga between 2001 and 2006 were executive in Tauranga and caters to a very A major project on the drawing board wonder then that Infometrics economist predominantly aged between 20 to 45 – a niche market, she says. is the tertiary and research campus that is Gareth Kiernan describes Tauranga as “a total of 53% of migrants from Auckland Tauranga’s high demand areas tend to being set up through a partnership between viable place to live in terms of employment to Tauranga, for example, were in this age be anything close to the CBD, such as the the University of Waikato, the Bay of opportunities”. bracket compared to 22.5% being over 60 Avenues, as well as other prestigious areas Plenty Polytechnic and Te Whare Wananga These are not one-off positive readings. years of age. Tauranga is retaining its power such as Bethlehem, Pyes Pa and Otumoetai. o Awanuiarangi. Research, training Late last year the bank’s trend report to attract young people. While Matua too is considered a residential and education linked to the business showed the Bay recorded the strongest rate “In our interviews it was emphasised area of choice, few rental properties are community’s needs will be a focus. of annual economic growth, lifting 3.5% that Tauranga is seen as a lifestyle location, available there, Barnard explains. “A fundamental focus for Priority One from a year earlier. which is possibly a factor behind this Areas tending to have a less favourable healthy pool of tenants here. countries and rates Tauranga as “without is to ensure our city is appealing to the In short and in the words of Kiernan, trend both for mid-career moves and reputation include Merivale and parts of “With good management, a well-looked- question the family-friendliest city there is”. younger demographic so we can retain and Tauranga city is doing “okay”. for retirement. So too may be the lure of Gate Pa and Greerton – although the latter after property should be rented year-round. “I know several executives who attract young, talented, skilled and creative Why it is faring well relative to the relatively affordable housing compared to has the bonus of being within the Tauranga The rental yield is less than in Auckland, have been offered very attractive jobs people. Then we will have no trouble national average is, he says, due to factors Auckland,” the report stated. Boys’ and Girls’ College zones. but Tauranga is a good place for long-term internationally, which they have turned attracting those businesses that will need such as the city’s exposure to the primary Figures released recently by the Real Many of the suburbs – even the more investment. This is a popular, vibrant, down because their growing families are them. We are seeing that shift happening sector (dairy and forestry, for example) and Estate Institute of New Zealand show the desirable ones - have “unattractive pockets”. growing city where capital gain can be really happy here.” already,” Coker says. the high commodity currently prevailing, a median sale price for Tauranga properties While properties in Mount Maunganui made,” Barnard says. Helen Barnard shares his sentiments. A challenge in the past has been the lack successful port, and population growth that in March sat between $340,000 and are in huge demand over summer, Barnard In May the most expensive house Tauranga is a city big enough to cater for of substantial, internationally competitive, helps the economy tick along. $360,000. Across the harbour bridge in says, tenants are aware that many landlords listed for sale was a humble beachfront a steady stream of new businesses plus export-focused businesses, but that too is Tauranga City Council’s population is Mount Maunganui – and further down expect them to vacate over summer when property on a 4866 square metre site with offer great schooling, shops, restaurants changing, Coker says. estimated at 114,300.In 1975 it stood at the coast in Papamoa – the median was high yields can be made. This obviously a $7.9 million price tag. In contrast, a and coffee, yet small enough to ensure All up, it’s not surprising then that, 43,414 and grew to 103,635 by 2006. Its $432,500. These sales trends were in line impacts on desirability. one-bedroom apartment on Waihi Road in parking and accessibility is not a problem. PLENTY according to the most recent National growth between 1996 and 2006 has been with March 2009 and 2010. More than 100 F Barnard, who moved to Tauranga Tauranga listed at $170,000. Proximity to Auckland, Taupo, Rotorua and O Bank regional trends report, Tauranga - recorded at 33%. It has slowed down, but properties sold in Tauranga in March, and from Auckland, has been in property Donovan-Grammer says several sales Hamilton is a plus.