By ELIZABETH BINNING
The small but popular settlement of Tairua is expected to increase in size by more than 25 per cent when a subdivision restriction is removed in the next few years.
Developers already have plans for up to 400 new sections in the holiday town which has been starved of major subdivisions since the moratorium was imposed in September 2000.
Such development would have put too much strain on the region's already struggling wastewater system.
However, construction of a $10 million wastewater system is expected to begin next year - depending on resource consents - and developers are looking at the seaside town with renewed interest.
Real estate agents are aware of plans for at least five subdivisions, including one of up to 350 sections, once the moratorium is lifted.
Tairua has about 1300 homes and 1500 permanent residents, a figure which swells to 9500 in summer.
The proposed subdivisions will increase the number of homes by 30 per cent - a major increase for a town which saw a 25 per cent increase in new homes between 1991 and 2001.
The biggest subdivision is expected to be on an old farm in the foothills behind the golf course and will be carried out in sections, the first of which will see 90 sites.
The sections, which will probably sell for $200,000 to $300,000, are expected to be snapped up by people keen to build holiday baches.
Richardsons real estate agent Bev Lovell, who is based in Tairua, said the subdivisions were greatly needed.
"We are just so desperate for sections in Tairua because there hasn't been any development.
"We just haven't had anything that has come to the market where people can purchase at a competitive price and put a beach house on it."
Ms Lovell said the last major development was about eight years ago.
The only other recent development has been the subdivision of a former holiday park, which was allowed to proceed because it already had wastewater facilities.
Ten of those 12 sections, which went on the market about two months ago, have already been snapped up for about $300,000 each.
Local businesses are welcoming the proposed subdivisions, saying the moratorium has hindered the town's economic growth for the past four years.
Roger Turner, owner of the Pacific Harbour Motor Lodge, recently surveyed more than 100 local businesses about the strength of the local economy.
"They are all saying the same thing ... the moratorium has hindered development, we need more businesses and that the economy is largely dependent on the summer trade."
Mr Turner said the new subdivisions would be good for the area, although he did expect to see a slow rather than sudden growth spurt in the town as a result.
"Any development is good development because the infrastructure grows because of it and you get more business opportunities arising from it."
He expects up to 80 per cent of the properties to be bought by "speculators" who will sell in two to three years because the profit margins are so great.
Members of conservation groups also welcome the development, as long as the subdivisions are in keeping with the natural look of the town.
One of the big concerns facing Tairua is a plan for a 150-berth marina in the harbour.
Resource consent for the proposed marina was declined last year after an 18-day hearing, on the basis that it would endanger the natural character of the area and restrict public access.
The developers are now preparing to appeal against that decision.
Herald Feature: Coromandel - the big squeeze
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