A high-profile corner site with a large landholding near a popular beach in one of New Zealand’s fastest growing regions will hold great appeal to a range of buyers given the future potential on offer.
209 Valley Road in Mount Maunganui comprises seven one-bedroom units and a three-bedroom house, providing a total floor area of 520sq m on a prominent freehold 1,561sq m section.
The site was formerly a motel, but the seven units and the three-bedroom house are currently leased individually to residential tenants and return approximately $191,000 per year in total gross rental income.
The property is zoned Residential and has the potential to be subdivided into seven to 10 lots, pending resource consent.
Clark, Managing Director at Colliers Tauranga, expects this property, which is on the corner of Valley Road and McDowell Street, to draw huge interest given the excellent location that offers nearly 100m of road frontage.
“This is a highly visible site in a unique location that is only 300m from the beautiful Omanu Beach, which is a popular spot, and will serve as a strong drawcard for the new owner,” Clark says.
“Each unit has an individual car park and the access to the property is excellent, providing another level of convenience.”
Data from Infometrics suggests the Bay of Plenty economy has continued to perform incredibly well following the Covid-19 lockdown period in 2020. Infometrics estimates that economic activity in the year to June 2021 is sitting 6.8 per cent higher than a year ago.
This rise compares to a growth rate of 4.2 per cent across the country, showing the Bay of Plenty’s strength. Activity in the year to June 2021 is sitting 5.7 per cent higher than the same period in 2019, showing that despite lockdown inflating current annual growth figures, the Bay of Plenty economy is still in a very strong position.
White, Commercial Sales Broker at Colliers Tauranga, says this property will give buyers the chance to acquire a prime location in one of the country’s key growth regions.
“The opportunities for the new owners of this property are quite broad and will appeal to a multitude of potential buyers and investors looking at residential rental income or developers of medium-to-high density residential housing in this prime beachside location,” White says.
“The first option will be to continue renting out each unit on a long-term basis to enjoy the strong rental returns and look for further capital appreciation in this large site.
“The second potential option for the new owner would be to redevelop the site into seven to 10 high-quality residential terraced or standalone houses while utilising the rental income during planning and applying for all consents before construction starts.”
The 2018 Census data shows that the Bay of Plenty is the second-fastest-growing region in New Zealand. Between 2013 and 2018 the region's population grew 15.2 per cent to 308,499 and was outshone only by Northland, which was up 18.1 per cent.
The number of people living in the wider Western Bay of Plenty increased by just over 7,600, with the district's population reaching 51,321, up 17.5 per cent since 2013.