Property editor of the NZ Herald

Big demand for unbuilt Auckland apartments

Photo / iStock
Photo / iStock

Auckland apartments are in hot demand, according to one big real estate agency.

Research from agency and consultancy CBRE in its latest Auckland Marketflash report showed big demand for units still in the pipeline.

Only 2000 of 7800 new unfinished apartments - or in some cases not even started - are still for sale.

Auckland has 103 active apartment projects, creating 7800 new units, CBRE said.

That is a big increase after only 1300 units in 28 buildings were completed in the past year.

About half of all apartments now in the development pipeline are pre-sold or under contract. A further quarter are not available for sale, due to factors such as the developer holding them for investment.

The research comes at the same time Cabinet Minister Nikki Kaye has called for people's stories of issues with body corporates and their managers, with a view to changing aspects of the current regime.

CBRE said the strong sales left only about a quarter of the pipeline, or 2000 units, on the market for sale.

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Zoltan Moricz, CBRE national research director, said development activity had increased dramatically.

"The number of apartments in the pipeline has almost doubled between 2014 and January 2016, and the 103 active projects are well spread across the Auckland region. The research also shows that expected apartment project completions in 2016 will approach the volume that were built during the peak years of the previous apartment development cycle in 2005," he said.

However, buying off the plans has not always proved wise.

In 2014, a purchaser of a New Lynn apartment was shocked to find window and bed space blocked by pillars she claims were not on the plans.

Yet the developer insisted the floor-to-ceiling pillars were declared, prompting a warning to buyers to get expert advice before buying off the plans.

- NZ Herald

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