Apartment market takes a dive

Colliers International’s latest research shows a number of proposed Auckland projects being delayed or, in some cases, abandoned. Several major apartment projects are being sold without being completed.

While apartment completions this year will exceed the eight-year average, with 2,545 new apartments being added to the city’s inventory, this is set to slow over the next two years.

Next year, projects under construction will contribute a further 1,890 units to the supply. However, the significant slowdown in project starts will likely lead to apartment project completions reaching multi-year lows in 2025.

Further evidence of the slowdown in development activity has shown up in building consent numbers. Stats NZ data shows annual apartment consents for Auckland over the year to October have dropped by 36% from 12 months prior to 2,095, the lowest 12 monthly total recorded since July 2017.