Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Buying apartments off-the-plan: Choose quality & experience

Media Release

30 November 2016

Buying apartments off-the-plan: Choose quality and experience

Buyers should have confidence in buying apartments off the plan says New Zealand Property Council Chief Executive, Connal Townsend.

Speaking at the Property Council Residential Summit on 30 November, Mr Townsend along with leading industry speakers addressed some of the challenges facing the residential development industry.

“The construction market is white hot the moment. We are in a boom time and with that comes challenges especially in relation to rising construction costs, labour shortages and the need to supply quality housing quickly given the housing shortage.

“This is a wider issue that involves not just developers, but banks, councils and builders.

“The Residential Summit is a step towards assessing the challenges and working together as an industry to come up with a solution that delivers on what society wants; affordable and sustainable housing.”

Mr Townsend stresses that experienced developers are working hard to keep up with demand and deliver quality developments on time and to budget.

“According to CBRE Auckland has 8,500 apartments in the active development pipeline. This includes under construction and actively marketed but not yet under construction, and over 2,500 have been completed since the start of the current development cycle in 2013. Given this scale, the industry is coping exceptionally well.”

The recent examples of a small number of projects seeking to increase prices prior to the sale and purchase agreements going unconditional, is the exception rather than the rule says Mr Townsend. They are an example of developers who do not follow best practice.

“Many experienced developers are delivering in this market without price increases.

“Buyers should have certainty in a developers ability to see through a project with the funds paid up front. There are plenty of well-funded, experienced developers, and buyers should have confidence that these companies would have fully tested a project’s deliverability prior to launch.”

He advises buyers to buy from developers who have a proven track record or work with an experienced project team. Buyers should look for a developer that has already successfully delivered off the plan apartment builds.

“Apartments are an important part of residential living in larger cities, especially in Auckland where we are experiencing a serious housing shortage. The experienced developers are focused on building and delivering superb developments, and will continue to do so”, says Mr Townsend.



About Property Council New Zealand

Property Council is a member-led, not-for-profit organisation offering a collective voice for the commercial property industry. Our members include owners, investors, managers, and developers of office, retail, industrial and residential properties, central and local government agencies and other property professionals. Our branches throughout the country represent some of the largest commercial property portfolios in Auckland, Waikato, Bay of Plenty, Wellington, Hawkes Bay and the South Island and Otago region, the value of which exceeds billions. We have an interest in all aspects of the built environment, and promote sound policies and requirements that benefit New Zealand as a whole.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Marsden Pipeline Rupture: Report Calls For Supply Improvements, Backs Digger Blame

The report makes several recommendations on how the sector can better prevent, prepare for, respond to, and recover from an incident. In particular, we consider it essential that government and industry work together to put in place and regularly practise sector-wide response plans, to improve the response to any future incident… More>>


Oil Scare: Trump Authorises Use Of Emergency Crude Stockpile

The New Zealand dollar fell against the US dollar after President Donald Trump authorised the use of the country's emergency crude stockpile after the weekend attack on Saudi Arabia’s major oil facilities. More>>


Pre-Post-Brexit Deal Talks: UK Trade Minister Visits Wellington

New Zealand should get a better deal for exports of sheepmeat, beef and dairy products into the United Kingdom after Brexit, the British Minister of State for Trade, Liz Truss, said in Wellington today. More>>


Not-Very Well: Tamarind Halts Tui Drilling; OMV Assesses Options

Tamarind Resources has halted drilling at its Tui oil field off the Taranaki coast after the first of the three planned wells came up dry. Managing director Ian Angell says that despite the “unexpected” result from the first well, the firm believes the other two prospects are worth pursuing. More>>


Seeking 'Clarity': Crown To Appeal Southern Response Decision, Offers Costs

“It is our intention that the clarity that will come from the outcome of these proceedings will enable the Crown to work with Southern Response to provide a soundly based proactive solution to those people that are affected.” More>>