Apartment development set for third highest record

If achieved, 3,122 new apartments will be added to the city’s inventory making it only the third time since 2000 that more than 3,000 new apartments have been completed in a calendar year.

The development acceleration has been underpinned by the growing appeal of apartment living in the suburbs. This year 22 suburban apartment developments will make up 75% of the regional total, up from 19% in 2016.

Colliers International research associate director Ian Little says development intentions remain positive as illustrated by building consents which have reached a record 50,653 in the year to August. “The influence of multi-unit developments has continued to increase. On a national basis the total number of apartment and townhouse consents made up 49% of total consents. In Auckland the influence of multi-unit development is greater still accounting for 73% of consents. “

The development sector’s ability to maintain momentum is, however, facing increasing constraints, including the cost and availability of credit to both developers and buyers, rising building costs putting pressure on margins and the general softness of the overall housing market.