The remaining supply of apartments for sale in Auckland has dropped by around 20 per cent. Photo / Getty Images
The remaining supply of apartments for sale in Auckland has dropped by around 20 per cent. Photo / Getty Images
The remaining supply of new apartments for sale in Auckland has dropped by around 20 per cent, and that could lead to more smaller apartments in the region.
Survey results from Colliers International show the remaining supply for new apartment developments has fallen, from 21 months' worth at the startof the year to a little under 16 months' worth now.
Colliers says that if new build sales activity for remaining supply remains at its current rate, Auckland could suffer a shortage of new apartments by 2019. Pete Evans, national director of residential project marketing at Colliers International, says one of the reasons for the drop has been a lack of available finance.
"The main reason is the banking industry decided about 12 months ago to stop lending to developers. That has slowed the supply," Evans says.
He believes the shortage coupled with the focus on bringing affordable apartments to the market will lead to smaller apartment projects and smaller sized apartments.
He points out that, while these smaller builds may seem more affordable, there might need to be some comprise on expectations.
