News & Research

Intensification in Auckland

27 April 2017

To meet Auckland’s under-supply crises for current and future demand, our current level of building consents needs to increase then hold for several years.

A shortage of skilled workers, increasing costs, time delays, and quality issues were already beginning to emerge in the Auckland market and that was before the latest data which showed the third month in a row of declining dwelling consents for Auckland. So there are clearly challenges to be overcome in order to step up the rate of building.

As covered off in our New Zealand Property Market and Economic Update Report for April/May 2017, we are currently looking at the third month in a row of declining dwelling consents for Auckland. This doesn’t bode well for housing growth targets which demand 10,000 - 12,000 new dwellings every year for the next 20 – 40 years. There is however a silver lining to all the doom! The good news is that the data is definitely showing a move towards intensification. 

40% of Auckland’s building consents in the last six months were for apartments, flats and units. Houses accounted for just over 50% of new dwellings consented. Just four years ago, houses were responsible for 80% of all new dwellings consented, so this is indeed a significant change. 

With a limited landmass for Auckland the new data makes sense. Whether you favour high quality intensification or affordable housing, or think Auckland should be able to achieve both - the new data highlights that at a very minimum, intensification has started: even if it does need to pick up the pace.

For an excellent overview on intensification from a design perspective, read this piece from Idealog. For an overview of the Auckland property market as it currently stands, read this. If you’re in the construction/property industry check out just some of the solutions that can offer you better market insight. 

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