Steaming hot: where house prices have almost tripled in 10 years and the toilet tissue is rolling
Sunday, 16 March 2025
The small Bay of Plenty town of Kawerau has enjoyed a property boom, with houses increasing by 170% in ten years.
It is still one of the least expensive places in Aotearoa.
Its a leading world player in geothermal power generation, highly sought after as businesses move to a low-carbon future.
Retirees, investors and cash-rich buyers from Auckland, Hamilton, Tauranga and Rotorua have fuelled a property boom in a small Bay of Plenty town, yet it’s still the second cheapest place to buy a house in the North Island.
There’s a housing boom, and a surge of industry activity, with the town becoming a leading world player in geothermal power generation, highly sought after as businesses move to a low-carbon future.
Kawerau, 100 km south-east of Tauranga and 58 km east of Rotorua, has been longed loved by locals “one of the best kept secrets of New Zealand.”
In the last ten years, house prices in Kawerau have almost tripled. The median house price is now $399,155, compared to $147,601 in 2015, an increase of 170%, according to Corelogic data.
Kawerau real estate agent Wayne Jackson said although there had been a “blip in Kawerau’s boom” after the Covid pandemic, it was now back to where it was pre-Covid.
“In 2019, before Covid, I sold 65 properties. Already this year I’ve done 17.”
Buyers include Aucklanders, as well as people from Hamilton, Rotorua, Tauranga and Whakatāne. It’s a mix of retirees, people with existing cash and equity, plus first time buyers looking for budget friendly homes.
There are also people commuting to Kawerau from Rotorua and Whakatāne, boosting the local economy, he said.
Renewed optimism is down to affordability, lifestyle - people wanting a life away from the rat race and closer to nature - as well as Kawerau’s location, landscape and climate.
“You see people and kids walking down the main street with a fishing rod, going to the river after work or school.
There are wonderful bush walks, a river and mountain right on our doorstep. If you’re young or on a mobility scooter you can still get around town safely without getting lost. It’s close to other bigger cities.”
“People are seeing opportunity here. There’s a new dairy factory, new road developments, a new industrial area, and a multi-million dollar facility to process greenhouse gases.”
The demographic is changing in a town that historically “got a bad rap”, Jackson says.
“We moved here from Thailand in 2013 because we had relatives here. We thought we’d stay until we found somewhere ”decent“, because back then, to an outsider, Kawerau didn’t have a good repututation. But we discovered a lovely town, and never left.”
Long-time Kawerau local Sue Walker, mother of BMX Olympian medallist Sarah, also “wouldn’t live anywhere else.”
To Sue and husband Graham, both teachers, Kawerau is simply “our beautiful home, with the maunga and awa drawing us in every day.”
“The climate, the land looks after us, and we look after it. We have a community that loves and respects both each other and our surroundings. We’re privileged to live here.”
Walker has seen the growth of the town as a teacher in Kawerau South school for 32 years. Husband Graham taught at Kawerau College and then in Whakatāne.
“I’m now teaching grandchildren of people I taught as young children,” says Sue.
She’s seen a surge in people moving to the town.
“There’s also been a surge in campervanners, but because of the boom, and speculators, it is hard for people who want to rent a property - there is not much available.”
The Walkers love the outdoors, swimming in Tarawera river, the Falls and Lake Rotoma, hiking bush trails, sea fishing, and they share a love of mountain biking.
They helped put Kawerau on the world stage when years ago, they bought their children Matt and Sarah bikes for Christmas.
Riding every Sunday as a family on riverside and bush tracks, Sarah Walker honed her prowess on a BMX. Her talent took from Kawerau to the Olympics in Beijing, then London where she won silver in 2012, cheered on by her parents.
On her return as silver medallist, a 7000 strong crowd screamed with pride for their Kawerau girl who brought recognition to the timber town.
It’s a place that will always be home for the Olympian, Sarah Walker told Stuff.
“I love the landscape with Mt Putauaki looking over the town and the parks and river . Now, I love that it is still where I call home with mum and dad still living there and giving back to the community.”
Malcolm Campbell “married a local girl” and the couple raised their family in Kawerau.
Campbell has owned and operated businesses in Kawerau for 47 years, serving nine terms on the Kawerau District Council including seven terms as Mayor.
Now a regional councillor, he’s focused still on ensuring his region remains “a thriving and desirable place to live, work, play and to do business.”
He doesn’t shy away from talk of gangs and crime - his own family butcher’s was gutted by fire in 202. He’s passionate about “wrap around” care for young people, and said “social sector trials” were working in his town under the previous government, but doesn’t see the new coalition’s “gang wars” having a significant impact in towns like Kawerau.
“You’d have to be a fool to not know the Mongrel Mob are here - but the answer is not the patch - we’ve done great work in town in the social sector but now that’s all gone.”
He’s positive that an economic revival can turn around the fortunes of the town but stresses the importance of getting locals “who most need it” involved, not just relying on newcomers or visitors to fill jobs.
“There’s a misconception that it all ended for Kawerau when the mill stopped doing paper. We don’t do paper any more but the mill never actually closed down - more adapted, producing brown pulp for cardboard.
Industries around town still employ thousands of people. So jobs are here and more coming, but we need to start getting more locals into the jobs.“
Other opportunities include the new Putauaki Trust Kawerau Industrial Estate. At over 55 hectares, there is leasehold land for new industrial facilities.
“Covid put a delay on its development but its proximity to the geothermal makes it appealing.”
Covid was a boost toKawerau, when lockdowns around the world revealed, how tissue and toilet paper is an essential commodity which people reach for first in a crisis, ahead of water and a can of beans.
This week, Essity, a global hygiene company headquartered in Sweden unveiled the world’s first tissue machine using 100% geothermal steam drying at its Kawerau paper mill.
The project engaged 120 local contractors alongside international experts, with the Kawerau mill contributing $40 million to the Bay of Plenty economy every year said Essity Australasia’s Managing Director Sid Takla.
“Our long-standing partnership with Ngāti Tūwharetoa Geothermal ensures that a portion of the energy revenue supports local marae, housing, and education initiatives.”
With global businesses wanting to transition to a low carbon future, the geothermal reservoir provides renewable energy with great potential.
To ensure locals benefit from both housing and jobs, Kawerau District Council is enabling residential development so employees and their families can live and work in town, said the council’s Tania Humberstone.
These include the Central Cove development, a 31-lot house and land package onformer school grounds, and the Porritt Glade Lifestyle Village, retirement home built by Council and Tangata Whenua Ngati Tuwharetoa (BOP) Settlement Trust, to provide quality affordable senior housing.
The aim was to free up family-sized homes for families to move into the district - which is exactly what’s happened, says Humberstone.