Tauranga enjoying 20 years of growth
Colliers’ Tauranga office recently marked its 21st anniversary. Throughout the past two decades, the underlying investment fundamentals that have been evident as Tauranga became one of the fastest growing cities in New Zealand have remained strong.
Underpinned by consistent population growth, particularly during the past 10 years, and a constrained land supply, commercial property investment has long remained an attractive proposition for a city that is part of the Golden Triangle which generates approximately 50 per cent of the country's GDP.
Data from Infometrics notes Tauranga’s population in 2002 was 96,300; fast forward to 2022 and that figure was 158,300. The number of business units in Tauranga has consistently outpaced the national growth figures since 2014.
Simon Clark, general manager of Colliers Tauranga, began the franchise in 2002 and has seen the area expand during his time in the region.
“Our client base has changed over the years,” Clark says. “When I began it was largely Waikatobased farmers but now we have more Auckland involvement as well as investors from across the North and South Islands.”
As Colliers Tauranga celebrated the birthday with an event for more than 150 past and present clients, Chris Dibble, director of strategic advisory at Colliers and a property research specialist, delivered a presentation on how the city's property market has evolved.
“The data shows it's been an incredible journey of growth in Tauranga over the past 21 years, with a significant surge in population, doubling in businesses, massive increase in port activity, and a surge in development projects,” Dibble says.
“When presenting our ‘then and now’ data on the Tauranga market a commonality observed was the similar relationship between interest rates and yields in the Tauranga market in 2002 and now. Understanding this correlation and leaning on local market experts will be key in making informed real estate investment decisions.
“It was also good to hear from people active in the Tauranga market, that after a challenging year, a promising turn in market sales activity is occurring, setting a positive tone for the upcoming year. The resilience of the Tauranga market is a testament to the region's enduring appeal and provides potential for further growth.”
The office has brokered a number of major transactions in the city this year, including notable deals in the Tauriko industrial park that continues to generate strong demand among buyers.
Clark says selling half the Bayfair Shopping Centre for $110 million in 2010 stands out, while the sale of part of Bob Clarkson’s property portfolio to Mackersy Property for $98 million in 2020 was another highlight.
Clark has seen plenty of change in his time with Colliers and has also helped the expansion of the organisation's rural network in the area, while the office previously had a division that specialised in apartments in Mt Maunganui during a particular period of growth.
He works alongside five commercial and industrial brokers as well as support staff, many of whom are long-serving members of the team.
“We haven’t substantially grown our number of brokers in 20 years, but we have a strong core of high-performing team members and that is our point of difference. We are all tertiary-qualified, skilled professionals, and we have a complementary set of skills.”
Gareth Fraser, CEO of Colliers New Zealand, says the organisation is proud of the office’s success. “We are grateful to have such an experienced team with boots on the ground who have shown a remarkable level of dedication to their clients across more than two decades.”