FEATURE
Apartment living has never had more appeal Matt Baird, Projects Manager, Barfoot & Thompson
For decades, the Kiwi dream has involved a standalone home on a quarter acre section, however in recent years, with house prices continuing to rise, this dream has become unaffordable for many. This is especially true for those trying to get onto the property ladder for the first time. While New Zealanders have been slower than people in other countries to embrace the idea of apartment living - the Kiwi market is now mature and going from strength to strength.
At Barfoot & Thompson Projects we’re seeing record activity in the apartment space and we anticipate continuing growth in multi-unit housing. In 2020, there was a 175% increase in the number of apartment sales in comparison to the same period in 2019, spread over a number of projects including Westlight, Urbizen, Crest, The Ridge and 30 Madden. So, what’s driving this staggering increase in sales? We know the target markets and what they’re looking for, whether it’s a first home, something mid-range, or top-end luxury, and we provide design guidance and develop an appropriate sales strategy around the specific target demographic. Demand has been strong for good quality owner-occupier apartments across all price bands and this market has continued to show good depth. For instance, I would estimate that 90% of the residents living in Wynyard Quarter own their property.
Apartment living is all about location and amenities. People seek convenience and easy access to transportation. The commute time for those living in outer suburbs that are part of the Auckland sprawl, can be a gamechanger for many who don’t want a long commute to work. People are willing to sacrifice the idea of a home and yard for convenience and nearby amenities such as shops and restaurants.
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The Real Estate Institute of New Zealand
Developers are getting creative Even with the provisions in the Auckland Unitary Plan, not everything on a buyer’s wish list can always be met at a particular development and we’re finding that some developers are getting creative to accommodate buyer needs. A good example to share is of one of our recent developments, a multi-unit building (21 units) in Mt Eden, where car parks were not feasible, but the location was fantastic. The design incorporated a free electric bike with every unit, in addition to having e-scooters available to residents. A shared electric car (with a charging station onsite) that residents can book to use when necessary was also made available. Buyers loved the innovative concepts and these features became a selling point for the project. Some developers are continuing to partner with KiwiBuild thus broadening their pool of potential buyers to include qualifying first home buyers who are keen to get on the property ladder as soon as possible.
Looking towards the future In New Zealand we have been incredibly lucky when it comes to COVID-19 so far. In many ways we are the envy of the world but that doesn’t mean we were totally unaffected, and this is particularly true in real estate with respect to developments.
