Apartment sales down
Valocity figures showed apartment sales in Tauranga Central peaked in 2018 with 34 sold.
However, apartment sales fell the following year.
In 2019, 23 apartments were sold.
The volume dropped year-on-year, hitting a low of nine sold in 2023.
Six apartments have sold so far this year.
Valocity senior research analyst Wayne Shum said Tauranga Central now had about 450 apartments, nearly double the 241 recorded in 2017.
Shum said the city centre was desirable for “lock up and leave” living.
He said a falling market and rising mortgage rates in 2022 “dampened demand” across all property types.
“Many who wished to downsize to an apartment were unable to sell their home at a desirable price in the 2022 to 2024 period.”
Tauranga City Council figures showed 14 multi-unit development consent applications in the Te Papa ward, which encompasses the city centre through to Gate Pā, in 2025.
The two towers have 96 apartments with one to three bedrooms and 23 garden villas and terrace homes. Photo / Alex Cairns
Multi-unit developments include townhouses, flats, units, apartments and retirement village units.
Council head of city planning and growth Andrew Mead said the pace of new consents had slowed in the past five years.
He said no major townhouse or multi-unit development had been consented in the city centre since 2021.
“This trend is not unique to the city centre and reflects broader economic and property market conditions that affect development activity.”
Elizabeth Towers penthouse for sale
The Elizabeth Towers penthouse, marketed by Bayleys Real Estate, is on the market for a deadline sale on September 3.
The two towers on the corner of Devonport Rd and Elizabeth St have 96 apartments with one to three bedrooms, and 23 garden villas and terrace homes.
Residents would have access to a landscaped Sky Garden, residents’ lounge, private entertaining areas, fitness facilities, basement parking, private storage and high-speed lifts.
Retail and hospitality offerings below include Farmers and Picnicka Bar and Grill.
The penthouse offered three bedrooms plus a study, spanning 210sq m internally.
It also had a further 160sq m of wraparound terraces, three and a half bathrooms, two secure car parks and north-facing outdoor living.
The view from the Elizabeth Towers penthouse.
Bayleys Tauranga residential and projects branch manager Jon O’Connor said Tauranga had less of an apartment culture three to five years ago.
However, he said recent Elizabeth Towers apartment sales reflected buyer confidence.
O’Connor said Bayleys had received inquiries for Elizabeth Towers from across New Zealand and Australia.
“People aren’t simply buying an apartment. They’re buying into what they believe Tauranga’s city centre is becoming.
“As more public and private investment comes to fruition, buyers can clearly see the quality of place that’s emerging, and that’s giving people confidence to act.”
He said city centre change was tangible.
“Many purchasers are coming from larger family homes, but they’re not looking to compromise.
“They’re downsizing the maintenance, not necessarily the lifestyle.”
An aerial view of Elizabeth Towers’ landscaped Sky Garden, pool and residents’ lounge.
Barfoot and Thompson real estate agent John Pasley said there was more demand for apartments in Mount Maunganui than Tauranga CBD.
He said buyers were “prepared to pay” for the Mount Maunganui lifestyle.
Pasley said apartment buyers tended to be holiday home buyers, downsizers, retirees and professionals.
“Young families aren’t going to apartments. They’re out there with a little bit of a backyard, close to schools and amenities.
“They need to be close to work; they want to be close to the beach. That’s why Pāpāmoa is such a burgeoning area.”
However, he said he felt “confident” Tauranga CBD would become a popular location.
Pasley said interest was growing slowly.
“I think in about another two to five years’ time, when there’s a lot more new builds, I think [Tauranga CBD’s] attraction will increase.”
Tauranga CBD projects underway
Building projects costing $672m were under construction in Tauranga’s CBD.
These include parts of Tauranga City Council’s $306m Te Manawataki o Te Papa civic precinct, the $206m Tauranga courthouse, an $80m office building at 2 Devonport Rd and the $80m Panorama Towers development.
The Te Manawataki o Te Papa library and community hub was expected to open on October 15. The museum and civic whare were planned for mid-2028.
Tauranga City Council head of community hubs, arts, heritage and events Gareth Wallis told the Bay of Plenty Times the precinct would attract about 5500 visitors a day.
The new Tauranga High and District Court complex was expected to be operational in late 2028.
Two developments were planned for delivery by year’s end: the $80m seven-storey office building – with Craigs Investment Partners as the anchor tenant – at 2 Devonport Rd and Asclepius Surgical, in the $80m Panorama Towers building on Hamilton St.
Bijou Johnson is a multimedia journalist based in Bay of Plenty. A passionate writer and reader, she grew up in Tauranga and developed a love for journalism while exploring various disciplines at university. She holds a Bachelor of Arts in Classical Studies from Massey University.