Media Release

11 November 2015

_______________________________________________________________________

Rotorua building and property interest trending up

The number of residential and commercial building consents and LIM (land information memoranda) reports issued for Rotorua properties is continuing to trend upwards, reinforcing growing optimism in the local economy.

Rotorua Lakes Council’s Economic Growth Portfolio lead and deputy mayor, Dave Donaldson, said an increase in residential and commercial consents was a very encouraging trend.

“Our Consents Solutions team has been run off its feet processing growing numbers of building consents, and handling a big surge in requests for LIM reports about properties.

“These are welcome signals of a local economy on the move and, when combined with other recent indicators like record GDP growth, surging visitor statistics and a reversal in net migration, give us cautious optimism that our economic future is looking much brighter.

“For me, I’ve been impressed by how many people and businesses are showing an interest in coming to Rotorua – to relocate for lifestyle reasons, or as visitors, or to invest in business. I’ve had talks with a number of investors in recent weeks who are looking seriously at new investment in our district.

“However there are now questions being asked about the availability of ‘greenfield’ residential and industrial sub-division land,” Mr Donaldson said.

Last month (October 2015) Rotorua Lakes Council issued 83 residential building consents, up 66 per cent on October 2014 when 50 were issued. For the three month period ending October this year the total number of residential building consents (253) increased by 20 per cent over the same period last year (210).

The total value of residential consents in October was, at $4.8 million, up 2.1 per cent on October last year ($4.7 million), and across the three months August to October the figure was $13.3 million, up 10.8 per cent up on the same period in 2014 ($12 million).

Commercial building consents have also shown an upturn. Twenty six were issued in October 2015, an increase of 18 per cent on last October’s 22 consents. For the three months to October this year the increase was 17 per cent (60 consents) over last year (51).

The total value of commercial consents in October was, at $6.9 million, up 122 per cent on the same month last year ($3.1 million). For the three month period it was $10 million, up 54 per cent on the same period in 2014 ($6.5 million).

New Real Estate Institute figures out this week showing a 71 per cent increase in Rotorua house sales in October this year compared to October 2014 are also borne out by an upsurge in requests for LIM reports. LIM reports set out the information a council holds on properties and are usually requested when a potential buyer is considering purchasing a property.

In the three month period ending October, Rotorua Lakes Council processed 294 requests for LIM reports, up 76 per cent on the same period last year when 167 requests were handled.

SUMMARY – ROTORUA CONSENTS AND LIMS:

Residential building consents issued -

October 2015 - 83 consents (up 66%); total value $4.8 million (up 2.1%)

October 2014 - 50 consents; total value $4.7 million

Aug to Oct 2015 - 253 consents (up 20%); total value $13.3 million (up 10.8%)

Aug to Oct 2014 -210 consent; total value $12 million

Commercial building consents issued -

October 2015 - 26 consents (up 18%); total value $6.9 million (up 122%)

October 2014 -22 consents; total value $3.1 million

Aug to Oct 2015 - 60 consents (up 17%); total value $10 million (up 54%)

Aug to Oct 2014 -51 consent; total value $6.5 million

Residential LIM reports issued -

Aug to Oct 2015 - 294 (up 76%)

Aug to Oct 2014 - 167

-ENDS-

© Scoop Media