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,
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
“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.