Nearly 6000 new apartments are set to be built across Auckland over the next three years, with most planned for suburban and city fringe areas rather than the CBD, new research reveals.
The new housing stock includes developments that are currently being marketed, have building consent or are under construction.
Thousands of other properties are still in the pre-planning stages or envisaged on surplus land being freed up for private developers by Auckland Council and the Crown.
The new apartment stock will help address a drastic housing shortage that has seen house prices soar across the city by 20 per cent in the past year to a new record median of $749,000 last month, according to Real Estate Institute data.
They show the city has 26,500 apartments in 393 buildings, 68 per cent of which are in the CBD.
Another 5723 apartments in 87 buildings are in the “active development pipeline” and set to be completed by late 2018. This represents a 20 per cent increase in apartment stock – to 32,000 apartments in 480 buildings.
While apartments have traditionally been built mainly in the CBD, the number constructed in fringe suburbs and suburban areas is forecast to reach an all-time high next year, with 1170 units due for completion in fringe areas, 960 in suburban zones and 790 in the CBD.
The new housing is planned right across the city, from Orewa to Pukekohe, and Beachlands to Henderson.
CBRE senior managing director Brent McGregor said 530 apartments in 12 buildings had already been completed this year, and a further 1486 added to the pipeline – more than half of them outside the CBD.
“What this research shows us is that the time of the fringe city and suburban apartment has come. Developers are responding to demand from people looking for affordable and attractive places to live, and apartment living is on the list all over the city.” Additional developments still in pre-planning stages included CBD towers, under-utilised fringe sites, building conversions, wider estate developments and new low-rise buildings in greenfield suburban areas.
Real Estate Institute chief executive Colleen Milne said affordability and supply were the main catalysts for Auckland’s housing problems.
“Apartments make excellent use of the land and often provide extra facilities, off street parking and location.”
The research follows warnings that an over-supply of low-quality apartments could send prices plummeting.
- Lane Nichols
- NZ Herald
- Photo: Doug Sherring