What’s in store for next year

Residential

Sales activity will remain subdued as property values continue to adjust from the artificial highs of 2021. A new value base emerge in the  latter part of next year, or early 2024. This will begin the transition to the next phase of the traditional property cycle encouraging increased participation in the market from both vendors and buyers.

While amendment of the Resource Management Act (RMA) is underway it will be a long-term project and in unlikely to have a significant impact on development in 2023.

Government policies aimed at promoting intensification however, particularly the National Policy Statement on Urban Design (NPS-UD) and the Medium Density Residential Standards (MDRS), will see multi-unit development becoming increasingly influential, especially within the country’s tier 1 cities. Product design and typology mix, however, must be market led rather than being dictated by development margins and feasibility processes