Development trend towards suburbs, says Toogood
The collapse of building companies has raised concern about the viability of developments, particularly in the apartment market. Bayleys apartment marketing specialist Phil Toogood told the Property Council’s market preview breakfast on 21 February it had to make it harder to sell off the plans, which had become customary for new projects.
“In Australia they have the backing and experience to build first and sell later. It is going to get very difficult if we don’t address those issues.”
Central Auckland ended 2000 with 6000 residential units, 6500 residents, 70% up on 1996. Mr Toogood said the focus of apartment development had moved to the suburbs, terraced housing was moving out to the second circle of suburbs, and the inner-city secondary market reflected quality of product.
“The owner-occupier market is maturing in the $400,000-plus range.”
Mr Toogood said in the early days “45-plus people bought for investment. Now it’s owner-occupiers.”
Future developments would be concentrated on arterial routes and be 4-5 storeys high, larger floor areas â€” and with play areas.