Auckland’s central city apartment market is reshaping, according to CBRE research.
“Historically,” says the research team in its Market flash paper out this week (though to put history in perspective, it’s a period of less than 20 years), “apartment buildings in Auckland’s cbd have been designed & sold for investment purposes. Over the course of 2015, CBRE has observed a growing pipeline of apartment projects within the cbd aimed at, and being taken up by, owner-occupiers. This has affected the pipeline by increasing the overall average internal size of apartments.
“Of the 23 projects in the current Auckland cbd apartment pipeline, 10 are primarily ‘investment’ apartment buildings, 10 are primarily ‘owner-occupier’ apartment buildings and 3 are classified as another use type, such as serviced apartments or student accommodation.”
The researchers said the average size of all investment apartments in the cbd pipeline was 54m² compared to the owner-occupier pipeline average of 73m². The average number of bedrooms investment apartments averaged 1.3 bedrooms, the owner-occupier apartments 1.6: “This data suggests that spaciousness, rather than additional bedrooms, is a key feature of the emerging central city owner-occupier market.”
The researchers said 1-2 investment apartment projects had been launched each quarter for 2 years, but 9 aimed at the owner-occupier market had been launched in the last 12 months.
The investment apartment projects had a total of 1455 units, the owner-occupier projects 1056 units. CBRE classified 685 as ‘other’, taking the total number in the pipeline to 3196 as at this month.
CBRE said the researchers classified the pipeline by building rather than individual apartment, depending on which market a project was aimed at or the takeup.
Attribution: Agency release.