A concept plan for the development of Ruakura Superhub.
A concept plan for the development of Ruakura Superhub.
Hamilton’s Ruakura Superhub development is proving to be an engine of economic growth as industrial consents hit record levels in the city.
The consenting figures are revealed in the Hamilton City Council’s latest Quarterly Economic Update, which provides a snapshot of the city’s economy during the September quarter.
Almost 78,000sq m of industrial floor area was consented during the three months to September, with most of the development centred in Ruakura.
The council’s growth funding and analytics manager Greg Carstens said the figures coming out of Ruakura were impressive.
“Non-residential development is important because it contributes to economic activity and employment,” Carstens said.
Hamilton's economy is reflected in the latest Quarterly Economic Update. Image / Supplied
“Broadly speaking, there are challenges around the availability of industrial land, such as ensuring the infrastructure is in place to enable development. To have an industrial area like Ruakura unlocked for development now is really valuable.”
The quarterly update draws on information from the council’s data sources as well as organisations such as CoreLogic and Marketview.
Hamilton’s Gross Domestic Product (GDP) was $12.2 billion across the year to September 2022 - an increase of 1.7 per cent from the previous year.
At 4.4 per cent, unemployment in the city remains at historic lows, providing challenges for employers in search of labour.
Ruakura Superhub is under development on Hamilton's eastern boundary.
Despite this, Hamilton’s economy is showing signs of slowing down, which is understandable given the national and global context, Carstens said. In November, the Reserve Bank of New Zealand (RBNZ) announced it intends to push the country into a recession to help ease inflation.
“If the Reserve Bank puts the brakes on the New Zealand economy by increasing interest rates, then we’re going to see those effects in Hamilton,” Carstens said.
“But the underlying strength of Hamilton’s economy is well established and the fundamentals are good.”
Hamilton’s median house price fell an estimated 6 per cent to $780,000 during the September quarter and the number of sales dropped 31 per cent. Some unsold properties are being added to the rental market, which will help keep city rents down.
“Council has rich sources of data to draw on that, generally speaking, other organisations don’t have access to,” Carstens said.
“As a public organisation, I think there’s an obligation to share this with our community.
“If you’re thinking of buying or selling a house, or you’re a business and you want to understand the job market better or learn where growth is occurring, then this quarterly economic update is really valuable.”
Hamilton continues to have a strong pipeline of residential projects coming through. The city remains fourth in New Zealand for consenting activity behind Auckland, Christchurch and Selwyn District.
For more information and to view the update click here.
Meanwhile, the latest data reveals that the Waipā District Council continues to process high numbers of building consent applications.
Group manager district growth and regulatory services, Wayne Allan, said 535 building consents - an average of 178 per month - were submitted during the July to September quarter, with a total value of $263,410,000. This represents growth of an additional 112 consents compared to the same period in the 2021/2022 financial year.
The number of code of compliance certificates issued has also grown, with 350 issued in the July to September quarter, compared to 290 in the same period last year.
Formal applications, pre-application meetings and enquiries remain at high levels. The scope of the work for new applications is a mix of commercial and residential, Allan said, with most new dwellings planned for Cambridge or Leamington.
Significant commercial consents issued during the July to September quarter included:
- An automotive head office at Hamilton Airport comprising a warehouse, offices and a specialised training facility.
