Northcote’s under-construction six-level 183-apartment project Elevation, pictured this month. Photo / Jason Dorday
Expansion of Auckland’s apartment market remains sluggish, data from this year’s first quarter show, although the build-to-rent sector is busy.
CBRE’s Tamba Carleton released the latest report on the state of the sector, headed The worst is over but there’s no recovery yet.
Few projects are planned and many have been shelved.
“Most of the abandonment[s] that have occurred in the past quarter are social housing projects that have experienced significant deferrals,” Carleton found.
The size of the forward-work pipeline has shrunk by 15 projects to 54 Auckland apartment developments now.
Three of those are being marketed while the rest have a building consent issued or are under construction, she found.
Seven Auckland apartment projects obtained pre-sales in this year’s first quarter, including two which have Crown underwrites.
Those are:
Carleton said the build-to-rent apartment sector remained busy, boosted by one Ellerslie project where construction is well under way.
She was referring to Simplicity Living building 330 new units on the ex-Ellerslie carpark land it bought from the Auckland Thoroughbred Racing Club.
That site sits alongside State Highway 1.
“Simplicity Living – owned by Simplicity’s diversified KiwiSaver and Investment Funds – has purchased 1.4ha of land from Ellerslie Racecourse for one of its next development projects,” Simplicity says of the project, which it says is in Remuera.
The business has been working there for some months, building new units on the site it says is “close to Greenlane train station, a supermarket, shops and offices and the medical hub around the Mercy Ascot Hospital”.
That hospital has since been renamed Allevia Hospital Ascot.
The Herald this month visited a large new Northcote apartment project. Elevation is a 183-unit modular apartment project from Vietnam. It is nearing completion with its boss forecasting its finish by December.
“We’re behind time by probably a year,” said Alistair Sawer, Ho Chi Minh-based chief executive and founder of developer and importer TLC Modular.
He cited many reasons for that delay. The development is an affordable housing scheme with a Kāinga Ora underwrite because the state entity sold TLC the land.
Importing the pods was meant to help speed up its completion but on a visit to Auckland, Sawer and development manager Ian Guilford showed the Herald inside the project and cited reasons for the hold-ups.
Covid, shipping delays, modules arriving at Northport and having to be brought down from Whāngarei, road closures, floods, Cyclone Gabrielle, the introduction of new systems and methods and compliance were some of the issues.
Carleton does not name any projects in her research.
In Ponsonby, the biggest new Auckland scheme to begin is the $150 million Pompallier on Ponsonby. Menswear retailer Rodd & Gunn is having a bar, restaurant and outdoor dining terrace built there.
CMP began work on that site before Christmas.
Over in Parnell, Martin Cooper and Mike Sullivan’s luxury 28-unit One Saint Stephens, beside the Anglican Holy Trinity Cathedral, is on a site they bought from the church.
It is now finished.
That project won an architectural award this year. Two fifth-level penthouses are the only places left to sell: 502 for $15.25m and 503 for $8.25m.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.