Western Bay of Plenty in pivotal growth phase

Core fundamentals are aligning in the Western Bay of Plenty, with major public and private investment accelerating growth across property sectors.

Bayleys Tauranga commercial sales manager Mark Walton says the sub region is experiencing strong development momentum, solid industry fundamentals, and rising cross sector interest.

“Council-led rezoning and targeted upgrades to roading and utility infrastructure are strengthening the region’s resilience and supporting future business, employment, and housing growth.

“The diverse economy driven by horticulture, the Port of Tauranga, logistics, research, and education, underpins strong demand for property and labour, and positions the region firmly within New Zealand’s high performing Golden Triangle.”

Tauranga is one of New Zealand’s fastest growing cities, with projections showing population growth of tens of thousands over the next 30 years. Walton says negotiations on the Western Bay of Plenty Regional Deal continue, with the aim being to unlock 40,000 new homes, 35,000 jobs and major infrastructure improvements.

Mixed use developments across established centres and emerging areas such as Tauriko West are accelerating, supported by significant roading upgrades and a focus on liveability and long-term economic resilience.

Bayleys is marketing Ferncliffe Farm, an 82-hectare, Medium Density Residential-zoned site that is fully development ready, with zoning, consents and transport upgrades in place. The wider Tauriko West corridor is poised for major transformation, with the established Tauriko Business Estate continuing to demonstrate strong commercial performance.

In the Tauranga CBD, Walton says the development jigsaw is well-advanced, and once the remaining pieces fall into place, Tauranga will be not just one of the country’s biggest cities, but one of the most progressive.

“Anchor developments including Tauranga City Council’s new mass timber office building, the Civic Centre, Justice Precinct and private office projects, are reshaping the CBD’s commercial core.

“The University of Waikato’s expanding Tauranga campus is bringing more students and activity to the city centre, while residential projects like Elizabeth Towers are supporting the rise of higher density living.

“Key projects are completed, underway or in a committed pipeline. As these catalysts come online, retail and hospitality activity should lift, supported by more pedestrians and a growing student population.”

Priority One, the region’s economic development organisation, is aligning private sector, government and council priorities to attract high quality investment.

Chief executive Dave Courtney says strong population and economic growth, combined with the potential Regional Deal, is boosting investor confidence.

“In 2022 we launched the Tauranga City Blueprint outlining catalyst projects to transform the CBD. Today, 18 of the 20 projects are completed or underway, representing an estimated $2.5 billion in investment – up from the original $1.5 billion.”

Recent milestones include Elizabeth Towers, the Northern Quarter, new office developments and progress on the Civic Centre Te Manawataki o Te Papa, which together will draw more people into the CBD and support retail and hospitality.

Courtney emphasises that city revitalisation requires persistence, but visible progress is building momentum for Priority One’s wider work.

“Priority One is focused on the core drivers of economic development – people, investment, and innovation.

“Through our Investment Attraction Advisory Group, we are working with partners across the region to position the Western Bay as ‘investment‑ready’. This means progressing credible opportunities that lift productivity, generate higher‑value jobs, and support long‑term economic resilience.

“We are also expanding the region’s innovation ecosystem by connecting founders and businesses with early‑stage capital and backing initiatives that address growth, productivity, and sustainability challenges.”

The University of Waikato is expanding its Tauranga city campus with the acquisition of the Bongard Centre and Craigs Investment Partners building and has secured long-term leases on other commercial buildings in Durham Street and Cameron Road for student accommodation expansion.

Since opening in 2019, enrolments have grown to more than 1,500 students. The University has plans to continue expanding academic programmes, to strengthen research activity, attract more international students, and deepen iwi, industry and community partnerships, which will help position Tauranga as a genuine university city, according to Deputy Vice-Chancellor, Professor Alister Jones.

“Our growth in the city centre reflects a shared vision for Tauranga’s future. We are strengthening our footprint in ways that support students, connect with community, and contribute positively to the wider transformation of the city.

“We are working closely with local partners to ensure our expanded academic programme offering aligns with regional growth sectors including health, construction, education, mātauranga Māori, coastal management, and technology.

“Where possible, we will leverage existing amenities and facilities for efficiency, such as the new Tauranga Library, and work alongside community partners to support the teaching of law, teacher education and health services.”

The University is also planning the New Zealand Institute for Marine Futures at Sulphur Point, with construction set for 2028.

Bayleys residential manager Jon O’Connor says the Western Bay is maturing into a region with strong foundations.

“Lifestyle appeal is now matched by structural drivers that will support the next phase of growth. Infrastructure upgrades are gaining momentum and new development from greenfield areas to higher density living, will significantly boost housing supply."