Media release: Property BOP's largest economic contributor, Tauranga leading the charge
The property industry is Bay of Plenty’s largest economic contributor and sixth largest employer according to research released today by Property Council New Zealand.
The sector contributed $1.57 billion to the Bay of Plenty economy in the year to March 2016 making up 14% the region’s total GDP. That’s slightly higher than the 12% that the sector contributed to GDP nationally.
Residential housing holds the lion’s share of property investment in the region, representing $23.3 billion or 81% of the total $31.4 billion held in property locally. Over half of the total value of buildings in the Bay of Plenty are in Tauranga, while Western Bay of Plenty and Rotorua comprise another 35%.
Property Council New Zealand branch president Brooke Courtney says with Tauranga’s population increasing by 25 percent in the last 20 years to overtake Dunedin as New Zealand’s fifth largest city, it’s little surprise the property industry is the region’s most significant and a key foundation for growth and investment into the region.
“Council and iwi are working well together to both open new land up for development and intensify land use in the CBD and the property industry is racing to provide the homes, workplaces and recreational facilities that Tauranga needs to cater for its growing population.”
Ms Courtney says that with stage one of the waterfront upgrade completed in April, the Quest Hotel due to open later this year and new public infrastructure such as a museum and performance venue in the pipeline, Tauranga will continue to lead growth in the Bay of Plenty region for some time to come.
“The collaborative approach taken by the Tauranga City Council in working closely with iwi and the property sector has meant all contributors can get on with the job of building a thriving, functional city.”
She points out that the demand for places for the growing population to live, work and gather has brought significant opportunities for employment and upskilling to those living in the Bay of Plenty region.
“Young people looking for employment no longer need to leave the region to pursue careers, and we’re seeing significant numbers of skilled tradespeople moving into the region to take advantage of the employment opportunities,” she says.
Property Council’s research shows that construction services is the largest sub-sector of the Property Industry in the region representing 53% of all property industry employment.
The full report can be found here
Key research findings
· The sector contributed $1.57 billion to the Bay of Plenty economy in the year to March 2016 making up 14% the region’s total GDP, compared to 12% nationally.
· The property industry is Bay of Plenty’s sixth largest employer, employing 8% of the region’s employees
· Construction services is the largest sub-sector of the property industry in the region representing 53% of all property industry employment.
· The Bay of Plenty mirrors the national average with females comprising 24% of employees in the property sector.
· The average income in the BOP property sector is $54,500 per annum (compared with $60,200 nationally)
· Residential stock holds the lion’s share of value, representing $23.3 billion or 81% of the total value held in property assets.
· Tauranga makes up over half the total value of buildings in the Bay of Plenty