Fewer than 2,000 of 7,800 apartments in development pipeline remain available for purchase
Auckland, 28 January 2016 – Only 25% of 7,800 apartments in Auckland’s current development pipeline remain available for purchase, according to CBRE New Zealand’s latest Auckland MarketFlash report.
The research shows that:
- At present there are 103 active apartment projects underway across the city, creating a total of 7,800 units
- This follows the 1,300 units across 28 buildings that were completed in the past year
- Approximately 50% of all apartments in the current pipeline are pre-sold or under contract
- A further 25% are not available for sale, due to factors such as the developer holding them for investment
- This leaves approximately 25% of the pipeline, circa 2,000 units, on the market for sale.
CBRE’s National Research Director Zoltan Moricz says: “The number of apartments in the pipeline has almost doubled between 2014 and January 2016, and the 103 active projects are well spread across the Auckland region. The research also shows that expected apartment project completions in 2016 will approach the volume that were built during the peak years of the previous apartment development cycle in 2005.”
Gavin Lloyd, CBRE’s National Director of Residential Projects, says: “The debate about the city’s housing going ‘up’ or ‘out’ is once again hot – and we’re seeing evidence that the demand for ‘up’ is driving development.
“To us, this shows that Auckland’s apartment market is reaching a mature state. Higher density apartment living is becoming increasingly seen as an option for people looking for a place to live in Auckland, which is a big change in the market.”
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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 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.
