Research shows that 1216 new apartments, totalling up to over $600 million, will be built in Auckland’s central business district. If the target is met, this will be a record setter within the decade.
According to Zoltan Moricz, Senior Director and Head of Research at real estate agents and consultants CBRE New Zealand, 343 new units – excluding suburban projects – had already been built in the city center.
As of now, 873 CBD units are well underway, and they are projected to be completed by the end of this year. This will total up to 1216 new units.
In contrast to 2012 and 2014, during which no apartment was completed in Auckland, there has been a steep increase in new finished units in recent years.
Just last year, 794 new units have been tallied across several new city blocks.
While the numbers were high, Moricz was convinced that there would not be an oversupply and that the apartments would sell out.
“I don’t think we’re heading towards a glut and you’ll see that from the charts. Compared to what was going on around 2004-2006, the number of units is less and yet the population growth has never been higher.
“The market itself is regulating the supply situation due to circumstances like construction costs and financing, so there’s a natural balancing,” he explained.