Commercial builds in Tauranga remain strong despite the economic downturn, with nearly $444 million in building consents issued in 2024.

Tauranga City Council building services manager Steve Pearce said there had been “significant development” in the suburb of Tauriko and the CBD.

“The city centre is seeing a massive revitalisation both for private and public projects.”

The council had several large commercial projects in the CBD, including a new library and museum.

While residential consents had nearly halved from the peak in 2021, Pearce said it appeared the city had “passed the dip”.

Reviving the city

Last year, 274 commercial consents valued at $443.8m and 1067 residential consents valued at $287.7m were issued, according to council records.

This compares to 252 commercial consents valued at nearly $498m in 2023 and 1024 residential with a value of nearly $341m.

Commercial consent values for 2023 and 2024 were nearly double that of 2020, where 270 consents were issued at a value of $254m.

Tauranga City Council offices at 90 Devonport Rd are nearly finished. Photo / David Hall.

Council staff will start moving into the new $45m council offices they are leasing from Willis Bond at 90 Devenport Rd from April.

Installation of the superstructure for the $92.2m library and community hub was set to finish on budget and on time in 2026.

Construction of the $128m museum and exhibition centre would begin in May and was due for completion in 2028.

The library and museum are part of the $306m Te Manawataki o Te Papa civic precinct project aimed at reviving the city’s heart.

Business-focused construction was very strong, but the council wasn’t seeing the same volume of residential builds, Pearce said.

‘We’ve got past the dip’

Residential consents had more than halved from 2180 consents in the peak in 2021 to 1067 consents in 2024.

Pearce said 2021 was Tauranga’s highest year on record for residential consents, but applications began to decrease late that year as interest rates increased.

There were early signs residential applications were increasing since the interest rate began to drop in August 2024.

“We are seeing an increase and so it feels like we’ve got past the dip.”

Investment in the Wetsern Bay of Plenty's horticultural sector was strong in 2024. Photo / Mead Norton

Western Bay of Plenty

Trends in neighbouring Western Bay of Plenty were similar, with 77 commercial building consents valued at $56.7m and 608 residential consents valued at $164.1m issued in 2024, council records show.

In 2023, 78 commercial consents valued at $42m and 824 residential consents worth $208.9m were issued.

The number of residential consents has dropped from 1006 issued in 2020, while commercial has increased since 2020, when 68 were issued.

Priority One chief executive Nigel Tutt said it was “really pleasing” commercial consents had managed to hold up “pretty well” when residential consenting had looked “pretty bleak”.

The Western Bay of Plenty still had a strong economy, so investment was needed and the kiwifruit industry was a good example.

An artist's impression of what Te Manawataki o Te Papa, Tauranga's future civic precinct, will look like. Image / Tauranga City Council

What’s being built?

The third-highest value commercial consent for Tauranga in 2024 was a $21m cool store for Mount Pack and Cool in Tauriko.

Three of the Western Bay of Plenty District Council’s top five consents by value for 2024 were for cool stores.

In Te Puke, EastPak had a $6.5m consent for a controlled atmosphere store, DMS Progrowers had a $6m consent for four cool stores and Apata Group’s $1.8m consent was for two cool stores in Pongakawa.

Tutt said Tauranga was a desirable place to be so private developers were keen to invest in the city centre.

The developments were not dependent on council projects, but the council needed to create the right environment for investment.

Te Manawataki o Te Papa and other council investments would help with the retail resurgence, he said.

“Together it’s actually really awesome.”

Artists' impression of Craigs Investment Partners House in central Tauranga. Image / Supplied

The largest value commercial consent for 2024 was for Craigs Investment Partners House at the corner of The Strand and Devonport Rd.

The $34.5m consent was for stage three of the seven-storey office building, which will have hospitality space on the ground floor.

A spokesman for the developer said the building acknowledged its “stunning location” and would have views of the harbour, Mauao and back toward the Kaimai Range.

Groundworks were complete and work on the superstructure above ground would start soon, he said.

The project faced several hurdles over the years — demolition of the former Westpac Building revealed widespread asbestos and its foundations had to be removed to create a basement for the new build, the spokesman said.

Ground conditions and proximity to the harbour meant the building needed 40- to 50m-deep concrete piles for the foundations with water continuously removed during construction.

There were also the challenges for the investors with supply issues, inflation and rapidly rising interest rates and, he said.

The project with an estimated cost of $80m is due for completion in 2026.

Artists' impression of the Northern Quarter Development that will be ready for tenants in June. Image / Supplied

Further down, at 45 The Strand, the Northern Quarter office and hospitality development is taking shape. A $24.6m consent for Stage 1b was issued last year.

Developer JWL Investments general manager Chris Morris said they aimed to finish the four-storey building by the end of May. Internal fitout would then start with tenants moving in from the end of June.

The foundation tenant would be law firm Holland Beckett.

The vision for the project was to draw on the history of the site and the various forms of commerce had taken place there over the years, Morris said.

“It’s intended to look like an old wharf or docklands building but putting a 21st century spin on it and bringing new business into town.”

2024 Tauranga building consents

Total value of commercial consents: $443,817,921

Total number of commercial consents: 274

Total value of residential consents: $287,702,316

Total number of residential consents: 1067

Tauranga’s top five commercial building consents 2024

2 Devonport Rd, Tauranga – Seven Storey office building, stage 3 for the superstructure - $34.5m

45 The Strand, Tauranga – Northern Quarter four-storey commercial building, stage 1b architectural/seismic/interior - $24.6m

Taitimu Rd, Tauriko - New cool store and offices - $21m

Taurikura Drive, Tauriko - Tauranga Crossing, Stage 3 expansion of the shopping mall - $20m

Community hub and Library, Tauranga CBD - Stage 3 architecture and building services - $20m

2024 Western Bay of Plenty building consents

Total value of commercial consents: $56,694,279

Total number of commercial consents: 77

Total value of residential consents: $164,139,863

Total number of residential consents: 608

Western Bay of Plenty’s top five commercial building consents 2024

Washer Road, Te Puke - EastPak controlled atmosphere store - $6.5m

Te Matai Road, Te Puke - DMS Progrowers four cool stores - $6m

Wilson Road South, Paengaroa - seasonal workers accommodation - $4.9m

Beach Road, Waihī Beach - Waihī Beach library - $2.7m

Old Coach Road, Pongakawa - Apata Group two cool stores - $1.8m

LDR is local body journalism co-funded by RNZ and NZ On Air.