Residential and industrial property development tanking

It mirrors the situation which arose post the 2008-2009 global financial crisis (GFC), which triggered a surge in property prices and rents and made houses unaffordable for many.

Colliers International research associate director Ian Little says while the slowdown poses challenges, a more profound shift might await New Zealand's real estate landscape.

“The slowdown in development, if sustained, could lead to a supply-demand imbalance, particularly within subsectors in which tenant demand remains evident.

“These supply-demand imbalances are likely to emerge first within the residential and industrial sectors followed by the prime end of the office market.”