Powerhouse triangle is NZ ‘shapeshifter’
The Auckland, Hamilton and Tauranga triangle remains this country’s economic powerhouse with Bayleys’ Insights, Data and Consulting team’s latest infrastructure series report highlighting significant stimuli within the zone.
With 44 per cent of New Zealand’s population living in the Golden Triangle, the Mega Real Estate & Infrastructure Projects Shaping NZ’s Golden Triangle report outlines how the triple-strength region is becoming even more interconnected and efficient through major transport initiatives and the emergence of weighty logistics hubs.
With just over half of the country’s building consents issued within the region last year, developers are pursuing projects in the zone with both Hamilton and Tauranga benefitting from spill-over demand from a highly-constrained Auckland market.
Bayleys’ analyst, Ankur Dakwale said there’s been another twist in the tail as individual, well-resourced large-scale occupiers secure their own property futures by securing greenfield sites to create bespoke precincts.
“This is typified by Fisher & Paykel Healthcare committing to a huge new campus at Karaka to future-proof its research, development and manufacturing operations, and The Comfort Group’s Sleepyhead Estate at O¯ hinewai in North Waikato where a circa-$1.2 billion mixed-use development is emerging.”
Quoted in Bayleys’ latest Total Property portfolio, Dakwale said these bold initiatives reflect the value seen by hefty business entities in the Golden Triangle. However, roading and other parts of the infrastructure jigsaw also need to keep pace.
“Accommodating growth in the zone requires savvy developers, meticulous due diligence and capacity to withstand high levels of scrutiny from local and central government to deliver projects in an efficient and timely manner.”
Clive MacKenzie, CEO for NZXlisted Kiwi Property Group, said that earth and civil works have commenced at Drury where, along with other entities, it’s effectively creating a new city. “Around 60,000 people are forecast to move into the Drury-O¯ paheke area over the next 25-30 years and that growth will unlock major economic opportunity for the area and create demand for quality housing, retail, offices and civic spaces,” said Mackenzie.
With a dire shortage of industrial land in Auckland, and pressure on the housing market set to continue as net migration numbers rise, Hamilton’s star is rising, according to David Cashmore, director Bayleys Waikato commercial.
“Logistics hubs at Ruakura and Horotiu are leveraging the infrastructural benefits of inland ports and freight rail connectivity, and optimally positioning the Waikato region to capitalise on the next wave of investment.”
Having watched the Golden Triangle’s dynamics closely since 2005, and noting more than 40 per cent of the country’s total freight by tonnage already moves within the zone, Tainui Group Holdings’ CEO Chris Joblin said it had confidence to build the Ruakura Port and Superhub, which opened last year.
“MBIE is forecasting the number of people living in the Golden Triangle to grow by around 700,000 people between now and 2043, so we foresee the dynamics between Auckland, Hamilton and Tauranga becoming richer and more interconnected over time. I believe we will increasingly think of the three cities as satellites of each other, each with their own strengths, but progressively seen externally for investment purposes as a single, well-balanced region.”
Mark Walton, director commercial and industrial Bayleys Tauranga, said activity from key national and global tenants confirms Tauranga is a strong alternative to Auckland and Hamilton. “The Port of Tauranga is pivotal for the region and there are plenty of industrial businesses looking for strategic sites bolstered by the confidence companies like Winstone Wallboards, Penske NZ, Lineage Logistics and Intertruck have displayed in committing to large purpose-built facilities in Tauriko Business Estate to future-proof operations.”