We’ve asked Nick from the projects team at New Zealand Sotheby’s International Realty to give us an insight on the growing Auckland luxury apartment market.
Thanks for joining us Nick. Firstly, tell us about how your team operates within the luxury apartment market?
Hello and thanks very much for the opportunity!
Our team leverages off our premium brand to focus on projects that are unique and special. As an example, many of our recent projects have incorporated heritage building aspects within the development.
One of our biggest strengths is that we work with the developer right from the outset. After all, we know exactly what our customers’ needs are when it comes to luxury apartment living. Therefore, it makes sense that we roll up our sleeves and get involved as consultants from the beginning. That way the developer can be confident their finished product will meet the demand and level of quality our customers require, and most importantly, sell!
What projects are your team currently involved with?
We are currently working on a number of premium projects including The International at 9 Princes St in town, The Ford Residences and Lofts in Parnell and we’re also about to launch The Paragon in Takapuna. We have further boutique developments in Parnell that will be released soon and also incorporate unique heritage aspects. It’s not uncommon for these to be completely sold off the plans before construction even begins.
We see other parts of the Auckland apartment market struggling but the luxury market seems to be growing and growing, why is this?
Auckland is entering a phase where a large number of our population live in the central suburbs and simply don’t require the large family home anymore. The kids have long left so therefore having a home with four or five bedrooms and large gardens or lawns is just not practical. Our customers’ focus is now on quality of life but ideally they want to remain living centrally. It’s due to this changing lifestyle as to why the luxury market is growing rapidly and will only increase to do so. In fact, we’re struggling to keep up with the demand.
Have there been any recent changes to Auckland city that will either add to the supply or demand of this style of luxury living.
Absolutely, the introduction of Auckland’s Unitary Plan now allows for apartments to be built along most major thoroughfare roads into Auckland. This is generally around local shopping villages and hubs. We’ll see and increasing number of luxury and boutique apartments developed in the inner city suburbs. Perfect for those who want to remain local to their neighbourhood but purchase a brand new ‘lock up and leave’ luxury property.
How long do these projects normally take to complete?
They vary from project to project depending on size and what season construction begins but generally a period of 18 months to two years is common. This is also why these apartments are so popular because it gives the purchasers plenty of time to plan for the selling of their own home and the change in lifestyle. Also, the majority of our customers have significant equity in their own properties so affordability is not an issue. It’s generally only a 10% deposit that is required, the balance is paid on completion of the development.
For anyone wanting to find out more, what should they do?
Simply give me a call or e-mail, I’d be happy to run through what projects are just around the corner.