Auckland, 16 June 2015 – At a time of unprecedented attention on Auckland housing availability and affordability, plus OECD warnings that Auckland’s house prices are becoming a burden to Kiwi households and the wider economy, new research released by CBRE today shows that 5,700 new apartments are set to be developed across the supercity by 2018.
The research, which is published at a time when major banks are reportedly dropping deposit thresholds for apartments, shows that:
At present, there are 26,500 apartments in 393 buildings across Auckland, mostly in the CBD (68%)
The 5,700 new apartments in 87 buildings currently in the active development pipeline throughout Auckland will increase apartment stock by 20% - to 32,000 apartments in 480 buildings - by the end of 2018
The number of apartments set to be developed in Auckland’s fringe and suburban areas (from Orewa to Pukekohe north to south, and from Beachlands to Henderson east to west) is set to reach an all-time high in 2016. In 2016, fringe city supply is expected to comprise 1,170 units, and 2016 suburban supply is expected to be 960 units
3,900 apartments made up the pipeline in late 2014, then 4,700 in early 2015, reaching 5,700 by the middle of this year. So far this year, 530 apartments in 12 buildings have completed construction and a further 1,486 apartments in 31 buildings have been added to the pipeline, more than half of which are located outside the CBD.
Brent McGregor, Senior Managing Director of CBRE New Zealand said: “What this research shows us is that the time of the fringe city and suburban apartment has come. Developers are responding to demand from people looking for affordable and attractive places to live, and apartment living is on the list all over the city.
“Historically, the CBD has always been the focus of apartment growth. However, the pipeline for Auckland’s CBD is only an 8% addition to existing CBD apartment stock, compared to increasingly active fringe city and suburban precincts, adding 30% and 35% to existing stock respectively.
“A significant number of apartment buildings are still in the pre-marketing stages and not yet part of the active pipeline - including CBD towers, the redevelopment of under-utilised fringe sites, conversions, continuation and commencement of wider estate development and new low rise buildings in greenfield areas of the suburbs. All but one of the developers involved in the apartment buildings that have completed construction so far this year have future projects that are currently being marketed or are in the pre marketing stages.”
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.