Section prices set to soar as Coromandel struggles

By AINSLEY THOMSON

Section prices on Coromandel Peninsula are set to rise by up to $25,000 as developers pass on a controversial new levy to pay for urgently needed infrastructure.

The levy is designed to help pay for new roads, sewerage and water systems and facilities such as libraries and reserves, needed to meet population growth.

On the Coromandel the need for improved infrastructure is pressing. It is struggling under the impact of a $100 million building boom over the past three years and its increasing popularity as a holiday spot.

Sewerage systems are failing to cope - sewage has spilled into a harbour - and fresh water is scarce in summer.

The Thames Coromandel District Council said the levy - likely to be about 5 per cent of the value of each lot - meant developers, and not existing ratepayers, would pay.

In Pauanui this would mean an increase in price of around $25,000. In less expensive locations it would be around $6000.

The levy will also hit homeowners who subdivide their sections.

Council spokesman Peter Hazael said the levy would collect about $25 million over 10 years.

The council plans to spend $100 million over the next three years on upgrading infrastructure around the peninsula.