A time like no other.

Transcription

1 Market Indicators Report Second Half AUCKLAND APARTMENTS & TERRACED UNITS A time like no other. Alexandra Park Architect: RTA Studios and RDDJ Developer: Auckland Trotting Club Accelerating success.

2 SKHY TWO Khyber Pass Road, Newton, Auckland SKHY TWO is designed by Cheshire Architects as part of the SKHY precinct, a mixed use development of residential, commercial and retail. SKHY TWO has 1 and 2 bedroom apartments, with some two level apartments. All apartments have been designed to have a view out to the central courtyard or beyond to the Waitakere Ranges.

3 SKHY TWO Architect: Cheshire Architects Developer: Lamont & Co Contents Auckland Residential 2H Review 1 Introduction 3 Key Findings 3 Auckland Residential Market 4 Apartments 5 Auckland CBD & Inner City Apartment Map 7 Terraced Units 10 Auckland's Unitary Plan 12 colliers.co.nz/find-research Join our LinkedIn group: Research & Consulting Colliers International NZ

4 IN BRIEF AUCKLAND RESIDENTIAL POPULATION 2x By 2043 the population in Auckland will be over double the combined size of Canterbury, Wellington & Hamilton 131,000 Residential dwellings needed in Auckland by 2023 to house the growing population HOUSING PRICING SIZING 8 % UP Asking price of Auckland apartments being marketed or in design phase are up (Between Q1 and Q3 ) Auckland average total floor area of existing one bedroom apartments 43m 2 CBD INNER CITY 60m 2 SUBURBAN 47m 2 61m 2 CBD 64m 2 INNER CITY Auckland total floor area of one bedroom new build apartments 77m 2 SUBURBAN 1

5 2H REVIEW By 2019 an additional Apartment 8,770 Units Terraced Units 2,800 will come into the Auckland market SUPPLY DEMAND 12 year high In residential building consents issued in Auckland (12 months to August ) ALBANY INCLUDING 1,200 +units In high growth areas like Albany & Mt Eden MT EDEN AUCKLAND UNITARY PLAN PANEL RECOMMENDATIONS 22 % Of single homes Appeals lodged with the Environment & High Courts...could be rezoned for greater intensification. This could see an increase in potential capacity by over 50% 422,000 units Estimated residential capacity by 2041 recommended by the Independent Hearings Panel

6 Botanica Heritage Architect: Peddle Thorp Developer: Residentiae Introduction The popularity of apartments and terraced units has been bolstered by the need for higher-density living in Auckland to alleviate demand and supply imbalances. Although a number of structural policy changes are now in place to address some of the pent-up demand, indications are the supply shortage will not be rectified soon. Restricting the potential for greater equilibrium in these market forces are constraints such as tightening lending criteria for developers, rising construction costs and in adequate infrastructure servicing to greenfield and brownfield locations. Loan-to-Value Ratio (LVR) changes have gone some way in slowing down price rises, but construction costs, along with the new build LVR policy exemptions, will maintain positive price momentum. Key Findings > > Demand and supply imbalances remain that will maintain the pressure for more residential developments of all types. > > Apartments and terraced units provide a higher density option, helping to alleviate some of the pent-up demand. > > Auckland needs an additional 131,000 dwellings by 2023, with current residential building consents issued reaching 9,581 in the 12 months to August. That's still well under the estimated 13,000 per year needed to keep pace with population demand, let alone the current shortage. > > The Reserve Bank of New Zealand (RBNZ) concedes that a number of policy actions are required to increase the long-term housing supply response in Auckland. This is why a major exemption to the minimum LVR policy was made by the RBNZ for investors and owner-occupiers of all newly built dwellings. This could see a greater focus by buyers on new builds. > > Auckland s existing apartment market has seen annual price increases slow from 19% to 15% p.a. between the latest LVR policy changes according to REINZ. > > We expect price growth to slow to more stable, long-term growth trends of around 7% pa. However average asking prices per square metre of recently launched apartment projects between March and September have risen 8%. > > Total apartment units completed in the remainder of will be 830 units. In is likely to reach around 3,860 units, with approximately 2,700 units in. > > A basket of 56 apartment projects in progress out of 136 that we track across Auckland has a current pre-sales rate of 77%. > > In Auckland, approximately 3,200 terraced units are likely be completed over the next five years, according to our latest analysis. > > There were 40 apartment building projects completed between January and September. A further 60 projects are currently under construction. These developments have, and will, add 7,000 units to the total supply. > > Between January and September, 33 apartment projects have been identified that will not proceed under original plans. Approximately 58% of these sites are currently being re-marketed for sale, 15% have been abandoned under current proposals and 27% have been deferred until a later stage. 3

7 Auckland Residential Market > > Auckland s residential sector is experiencing growing pains that will be hard to resolve. This is despite the changes that have been implemented by the Reserve Bank, local and central government and the building industry over the past year. > > Population growth of approximately 3% pa in recent years has exceeded forecasts. > > Extremely high levels of demand from residents as well as from investors wanting to own real estate in Auckland has pushed prices up strongly. > > Demand has outweighed supply for a number of years, resulting in a shortfall of approximately 40,000 according to analysis provided by the Independent Hearings Panel (the Panel). > > There is a need for an additional 13,000 dwellings annually over the next seven years just to match the pace of population growth. > > This means we need an additional 131,000 dwellings by > > Residential building consents issued in Auckland reached a 12- year high of 9,851 in the 12 months to August. > > This is despite a concerted effort by central and local government to change the situation. > > Given the capacity constraints in the construction industry, which can t keep up with demand, if will be even more hard-pressed to cope with more activity. > > Questions surrounding the construction timelines and funding for suitable infrastructure capable of supporting the increased level of supply, remain unresolved. > > These constraints are likely to mean that the shortfall will get larger. > > The imbalance between demand and supply has seen median sale prices pushed to a point where Auckland has one of the highest house price-to-income multiples around the world. > > The Reserve Bank of New Zealand (RBNZ) concedes that a number of policy actions are required to increase the long-term housing supply response in order to correct the growing imbalances nationally, but particularly in Auckland. > > The Loan-to-Value Ratio (LVR) policy changes implemented by the RBNZ have been introduced to combat these imbalances and provide financial stability to the New Zealand economy. > > The majority of investors in residential property anywhere in New Zealand now require a 40% deposit, while the majority of owneroccupiers require a 20% deposit. > > Investors and owner-occupiers purchasing all newly built dwellings completed fewer than six months before the mortgage application, are exempt from these minimum deposit levels. Number of Units Population (millions) Auckland Population: Stats NZ Medium Population Growth Projections, Revisions and Actual ( ) Actual Population 1996 StatsNZ Medium Projection 2001 StatsNZ Medium Projection 2006 StatsNZ Medium Projection 2013 StatsNZ Medium Projection Poly (1996 StatsNZ Medium Projection) Source: Statistics NZ, Auckland Transport, Joint Modelling Applications Centre Auckland Apartment Units Consented vs Built 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Source: Statistics NZ, Colliers International Research Residential Property Market Outlook Survey Results (All Dwelling Types) Hamilton Tauranga/ Mt Maunganui Queenstown Auckland Wellington NZ Overall Nelson Napier/Hastings Dunedin Whangarei Christchurch Palmerston North Auckland Apartment Units Consented Jun-16 Sep-16 0% 20% 40% 60% 80% 100% Net Percent Auckland Apartment Units Built Percent of respondents who expect the median price to increase over the next 12 months Source: Colliers International Research 4

8 Apartments > > Apartment development has increased strongly in recent years. > > There were 40 apartment building projects completed between January and September. A further 60 projects are currently under construction. These developments have, and will, add 7,000 units to the total supply. > > Despite not reaching the number of units required to match demand, current building rates are well above the 834 units built in aggregate between 2010 and > > In the nine months to September, 1,514 apartments have been constructed. This exceeds the 964 apartments completed in. > > Total apartment units completed in the remainder of will be 830 units. In is likely to reach around 3,860 units, with approximately 2,700 units in. > > The result will be fractionally above the peak reached in 2005 of approximately 3,600 units. However, there was a significant number of smaller CBD apartments built pre that at the time which colloquially became known as shoe-box apartments. As a result, minimum floor sizes were introduced. > > A basket of 56 apartment projects currently in progress out of 136 that we track across Auckland has a current pre-sales rate of 77%. > > Although 60% of all existing apartment units are in the CBD, a major structural change is occurring. Forecasts indicate that only 36% of new apartment supply in will be in the CBD the lowest ratio ever recorded. > > One key catalyst for more inner city and suburban apartments has been the rapid escalation in prices. This has enabled development schemes to become feasible despite higher land values and construction costs. Ironically, the price of increasing supply is increasing unaffordability. Number of Units Number of Units Auckland Apartment Supply Timeline 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Source: Colliers International Research CBD Inner City Suburban F F F 2019F 2020F Auckland Apartment Supply by Location 25,000 22,500 20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0 Existing Forecast to 2020 Buildings CBD Inner City Suburban Source: CoreLogic, Colliers International Research Only existing units and units under construction or in the marketing/design stage are included. An apartment is classified as a building that has 10+ residential units stacked horizontally and/or vertically Future Supply p.a Miro Enfield Street, Mount Eden, Auckland Launched in by XCJ Group, Miro is under construction with completion expected by Spring. There are 95 apartments over five levels in the development with a mix of 1, 2 and 3 bedroom apartments with commercial/retail premises on the ground floor. Miro is located on Enfield Street amongst other residential developments within walking distance of homeware and furniture retailers, restaurants and bars, Mount Eden Train Station and bus stops on Mount Eden Road. Architect: Ashton Mitchell Developer: XCJ Group 5

9 > > A number of other key features of the market driving the attractiveness of non-cbd apartments include: the quality of developments, greater emphasis on convenient lifestyles, demographic shifts of the baby-booming downsizers, and better public transport. > > Between January and September, 33 apartment projects have been identified that will not proceed under original plans. Approximately 58% of these sites are currently being re-marketed for sale, 15% have been abandoned under current proposals and 27% have been deferred until a later stage. > > 25 of the 33 apartment projects are sites for sale (the majority with current resource consent) so could therefore proceed at a later date or in a different design. Sale prices > > The median sale price of existing apartments in Auckland in the 12 months to August was $499,000, up 15% from the previous year, according to the Real Estate Institute of New Zealand (REINZ). > > This slowed fractionally from the 19% increase in the 12 months to July, most likely reflecting the recent LVR policy changes. > > The Reserve Bank has suggested that policy changes could reduce annual capital appreciation by around 2% to 4% pa which coincides with the latest changes. > > Our analysis of more than 9,000 apartment units currently in the marketing or design phase indicates that average prices per square metre have increased the most for three bedroom units in the CBD, up 15% between Q1 and Q3. > > One and two bedroom apartments outside of the CBD have seen average asking prices per square metre decrease between Q1 and Q3. However, overall prices are higher as average floor areas of apartments have increased. > > Although some of the rise in average asking prices is a result of the quality and size of properties currently being marketed, increasing construction costs remain a key component of the latest price rises for new premises. > > Average asking prices per square metre for new apartment projects launched between March and September Auckland wide have risen 8%. Total floor area > > One bedroom Auckland apartments being marketed or in the design phase have a total average floor area (including internal and external areas) ranging between 61 sqm and 77 sqm depending on location (see table below). > > This is in contrast to Q1 results which saw the average new build CBD floor size for one bedroom apartments at just 41 sqm. > > Other changes to the total floor area include the lift in inner city and suburban two bedroom units now both at around 100 sqm compared to between 90 sqm and 94 sqm in early. > > The increase in total floor area has pushed total asking prices higher between survey periods despite the average sale price per square metre reducing slightly in some categories. > > The CBD continues to push new boundaries in the three bedroom apartment market with total floor areas now reaching a total average floor area of 155 sqm. > > This is a significant rise from the 133 sqm recorded in early and is a reflection of a recently marketed CBD project that has floor plates over 200 sqm in their three bedroom product. Average Auckland Apartment Asking Price $/m² New Build Units Marketed in Q1 Average Auckland Apartment Total Floor Area New Build Units Marketed in Q1 1 BEDROOM SALE PRICE 2 BEDROOM SALE PRICE 3 BEDROOM SALE PRICE 1 BEDROOM AREA (m²) 2 BEDROOM AREA (m²) 3 BEDROOM AREA (m²) CBD $10,430 $10,542 $10,662 Inner City $9,677 $10,290 $10,636 Suburban $7,181 $7,995 $7,811 CBD Inner City Suburban Average Auckland Apartment Asking Price ($/m²) New Build Units Marketed in Q3 Average Auckland Apartment Total Floor Area New Build Units Marketed in Q3 1 BEDROOM SALE PRICE 2 BEDROOM SALE PRICE 3 BEDROOM SALE PRICE 1 BEDROOM AREA (m²) 2 BEDROOM AREA (m²) 3 BEDROOM AREA (m²) CBD $11,169 $11,052 $12,246 Inner City $9,655 $10,233 $11,207 Suburban $7,120 $7,587 $7,824 CBD Inner City Suburban Source: Colliers International Research Note: Gross floor area 6

10 Curran St t Auckland CBD and Inner City Apartment Map WAITEMATA HARBOUR Hamer St WYNYARD WHARF Brigham St Wallace St Kelmarna Ave Lawrence St Albany Rd Kakanoa St Sentinel Rd Tutanekai St Allen Rd Jervois Rd Richmond Rd Surrey Cres Great North Rd Tuarangi Rd Wanganui Ave Trinity St Baildon Rd Ardmore Rd Dryden St Hamilton Rd John St Cockburn St Arnold St Schofield St Station S80 Islington St Curran St Vert Clarence St Coleridge St Chamberlain St Sarsfield St Emmett St Rich m Northlan d St Pompallier TceBayard St Shelly Beach Rd Cameron St Redmon St Seymour St Crummer Rd Hackett S Sussex St Great North Rd t Melford St Dedwood Tce Cowan St Russell St O Neill St o Dickens St Summer St Vermont St nd Rd Millais St Murdock Elgin St Harcourt St Kingsland Ave Ponsonby Tce Forty Three Apartment The Dylan Lincoln St Norfolk St Douglas St Brown St Rd Rose Rd Leighton St Williamson Ave Grosvenor St Commercial Rd Fourth Ave Third Ave Second Ave First Ave Beaconsfield St Renall St Cooper St N O R T H W E S T E R N M W Y Nixon Central Sandringham Rd Ariki St Saint M arys R d Ponsonby Rd Arthur St Crest Bond St Turakina St Ge orgina Wood St London St S canlan St New St Mackelvie St Crummer Rd Bond St Walters Rd Elizabeth St Lot 22 St Collingwood St Paget St Dean St 16 KINGSLAND S O U T H E R N M W Y King St Ryle St Waitemata S t Picton St Hargreaves St College Hill Gunson St Anglesea St B a r rie St Colin Shaw Ln Pollen St Franklin Rd Aria Apartments Potatau St Hom e St Nexus Soma Apartments Brisbane St North 16 NXN Keppell St ugh Ponsonby Rd Beaumont St Wellington St Hepburn St Napier St Hepburn St Beresford St Hopetoun St Beaumont St Gundry St Great North Rd Karangahape Rd Buchanan St Aitken Tce Bright St Alexander St Copeland St Haslett St Newton Rd New North Rd New North Road Onslow Rd St Wynyard Central A U C K Grace Victoria Quarter Union Green Sugar Tree (Stage 2) WESTERN PARK minion Rd Dominion Rd Ian McKinnon Dr Jellicoe St Madden St Pakenham St West Daldy St Gaunt St The Vulcan VICTORIA PARK Drake St Howe St V Bellevue Rd Sale St L A N D H A M I L T O N Pollen Street Apartments Hereford Residences 7 Sugar Tree (Stage 1) Western Park Apartments Sol Residences Daisy The Boutique Uno and Duo WYNYARD QUARTER Halsey St Charlotte St irginia Ave West B rentwood Ave View Rd Ave 132 Halsey H WY Viaduct H a r b Cook St Fanshawe St Victoria St West Sale Street Residences Union & Co Hopetoun Residences Newton Rise URBA Wellesley St West Nelson St Nelson St Pitt St Hopetoun St Beresford Sq East St Ruru St Graham St o ur Ave Hobson St Poynto n Vincent St Karangahape Rd Exmouth St Mer cury Ln Dacre St Karaka St Randolph St Wynyard Rd BASQUE ROAD RESERVE Saba on Fanshawe Sugar Tree (Stage 3) Lighthouse Parkview Residences Station R MT EDEN Sylv an Edenvale Cres Upper Queen St Tce Dundonald St Nika u St Ave West Customs St West St Benedicts St Shaddock St Kelly St Mount Eden Rd Esplanade Rd Market Pl Mayoral Drive Wyndham Residences MYERS PARK Skyview Apartments P R O P O S E D The Saint Eve Apartments Oasis The Citizen Enfield St Apartments Botanica Heritage Greys Ave Hobson St Symonds St Sturdee St Park Residences Wyndham St SKY TOWER Hobson Fiore Two Federal St Victoria St East Khyber Pass Rd Nugent St Customs St West Swanson St Federal St Albert St Albert St Symonds St Grafton Bridge Queen St Queen St Queen St Queen St Burto n Bosto n Rd Kingston St Elliot St AOTEA SQUARE Fiore Cook Residences 106 Vincent St 2020 The Eight City Rd Liverpool St S O U T H E R N M W Y Basilica Apartments St SKHY Apartments Victoria Residences Enfield St Edwin St Normanby Rd MT EDEN DOMAIN PRINCES WHARF Mills Ln Lorne St Mayoral Drive Wakefield St High St Grafton Rd Fort Ln Kitchener St Wellesley St East Qu Fo Shortla St Paul St Mount St G Commerce C hance Bow ALBERT PARK North Weste Par Seafield View Rd Clive Rd QUEE BRITOMART Commerce St TBC Civic Quarter Symonds St SKHY Apartments Miro Eden Green Queen Square Summit on Symonds Kosmopolis Botanica Mt Eden Carlton Nugent Building C

11 B r Fabric of Onehunga Architect: Ashton Mitchell Developer: Lamont & Co NS WHARF ay St CAPTAIN COOK WHARF MARSDEN WHARF WHARF BLEDISLOE & KINGS JELLICOE WHARF KEY Auckland Harbourside Auckland Central West Auckland Central East Recently Completed Grafton West Building name Completed Date St alway St Gore St rt St n d St ry St en Ave Princes St Princes St rn Motorway Symonds St Grafton Rd Tyler St Alfred St l E mily P Grafton Rd l Gore & Customs St TBC Block 7 Britomart P The International AUCKLAND UNIVERSITY St James Suites Library The Airedale 16 UniLodge Beach Rd Eden Cres G rafton Rd Pinnacle Apartments Anzac Ave Parliament St Tangihua St Beach Rd Alten Rd Churchill St Stanley St ASB TENNIS CENTRE Whitaker Park Central Quay St The Maritime Apartment The Antipodean M a huhu Cres Carlaw Park Ave Connect Te Taou Cres Carlaw Park (Stage 2) Parnell Rise The Strand Augustus Tce Parnell Rd Carlaw Park (Stage 1) OneThree Cheshire AUCKLAND DOMAIN Fox St York St Earle St Bath St Cheshire St Under Construction Bradford St Marketing /Design Windsor St Parnell Rd Quay St VECTOR ARENA 16 Scarborough Tce Parnell Central Ford Lofts Garfield St irdwood Cres Building name Completion Date Building name Completion Date T h e Strand Saint George s Bay Rd Balfour Rd Gladstone Rd Avon St Gladstone Rd Saint Stephens Ave Brighton Rd SKHY TWO Architect: Cheshire Architects Developer: Lamont & Co k Rd Park Ave Gore Rd Mountain Rd Glasgow Tce GRAFTON Mountain Rd Park Rd Khyber Pass Rd A U C K L A N D H A M I L T O N H W Y The Edgerly Apartments The Ivory Carlton Gore Rd The James Hypatia Crowhurst St s Ave Gillies Ave George St Kingdon St Morgan St AUCKLAND WAR MEMORIAL MUSEUM NEWMARKET Broadway Broadway Nuffield Apartments Railway St Lauriston Ave Remuera Rd Sarawia St Maui G James Cook Cres ove Saint Marks Rd Parnell Rd Middleton Rd Marnie St St Marks Ada St Belmont St Remuera Rd Ayr St NEWMARKET PARK Bassett Rd Bassett Rd The Glen Seaview Rd Botanica Heritage Architect: Peddle Thorp Developer: Residentiae

12 Mount Eden Mount Eden is undergoing a transformation as population growth and the intensification outlined under the Auckland Unitary Plan combine to allow for greater density residential living in a popular area for its schooling, road networks, access to public transport and proximity to the central city. Hobsonville Point Hobsonville Point is an example of how community focussed, masterplanned developments can be successfully undertaken, catering to the demand for a variety of housing typologies within a relatively short period of time. Photo courtesy of skylens.co.nz 9

13 Terraced Units > > A resurgence in the development of terraced units is taking place, driven by the structural imbalances between demand and supply, fuelled by a growing acceptance of higher density living. > > The popularity of modern terraced units has risen from the perspective of both developers and purchasers. > > This has been spurred on by: a maturing purchaser market, a lower price-point than stand-alone dwellings, and a way to combat higher construction costs, higher land values and lack of suitably zoned land for development. Net Percent Auckland Outlook for Median Dwelling Price 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% All Dwellings New Apartment Source: Colliers International Research Jun-16 Sep-16 Existing Apartment New Terraced & Detached House Existing Terraced & Detached House > > In Auckland, approximately 2,800 terraced units are likely be completed by 2019, according to our latest analysis. > > Suburban areas such as Hobsonville Point, Mount Wellington and Albany are seeing the most growth. In the next five years over 2,300 units are likely to be completed in these areas. > > The majority of the supply in terraced housing is in the suburbs, with only 5% of terraced units expected to be built in the inner city and CBD over the next five years. Number of Units Terraced Unit Future Supply by Location 1,200 CBD Inner City Suburban 1,000 Future Supply p.a > > Although the outlook for median dwelling prices has reduced, the majority of our survey respondents expect a higher median price in the next 12 months for all types of dwellings Source: CoreLogic, Colliers International Research Only existing units and units under construction or in the marketing/design stage are included. Alexandra Park 223 Green Lane West, Epsom, Auckland Alexandra Park launched in April and has been one of the most successful masterplanned residential developments in Auckland. Stage One and Two were released in and are currently under construction with completion expected in late. There are 246 apartments over both stages with a mix of one, two and three bedroom apartments, penthouses and terraced townhouses. Alexandra Park Architect: RTA Studios and RDDJ Developer: Auckland Trotting Club 10

14 Onehunga Onehunga is undergoing a period of gentrification supported by strong population and employment growth. Its connectivity with the city through public transport provides Onehunga a distinct advantage. The change of use under the Proposed Auckland Unitary Plan provides Onehunga with a bright future. Wynyard Quarter Wynyard Quarter is Auckland s response to the global trend of up-zoning an industrial precinct on the CBD fringe into a higher and better use. The precinct has already experienced significant changes with commercial office, retail and hotel accommodation being built or underway. The addition of residential living will add to the growing vibe. 11

15 Auckland's Unitary Plan > > After the amalgamation of the Auckland district and regional councils in 2011, Auckland Council developed the Proposed Auckland Unitary Plan (PAUP) to replace the existing Regional Policy Statement and 13 district and regional plans. > > The objective was to make the construction and consenting process more streamlined and straightforward as well as facilitate and accommodate the growth forecast in Auckland. > > The Auckland Unitary Plan Independent Hearings Panel (the Panel) was set up by the Local Government (Auckland Transitional Provisions) Act 2010 to assist with the transition, hear submissions and make recommendations to the council. Its members were appointed by the Minister for the Environment and the Minister of Conservation. > > On 22 July, the Panel delivered its recommendations to Auckland Council. On 19 August, the Council notified its decisions. The Panel s findings provided for a significantly higher density and estimated feasible enabled residential capacity, as shown in the accompanying table and chart. > > Between 19 August and 16 September the law allowed for limited appeals on the council's decisions on the Auckland Unitary Plan to the Environment Court and also allowed submitters to appeal to the High Court on points of law only. > > There were a total of 106 appeals lodged with the Environment and High Courts. > > At the time of writing this report in mid-october, we understand that Auckland Council may be able to make the Auckland Unitary Plan operative in part, in areas not affected by appeals, but would need to follow statutory processes, which may take some time. The situation is unclear. > > A joint appeal to the High Court by Auckland 2040 and the Character Coalition, which was broad in scope would also postpone significant parts of the PAUP becoming operative until the appeal was resolved. > > In this period applications for resource consent to develop a property will need to be assessed against the relevant operative legacy planning zones and rules as well as the PAUP. > > We understand that the Property Council of New Zealand submitted a notice of intention to appear and an application to intervene in the proceedings involving Auckland 2040 and the Character Coalition and Auckland Council. This is to uphold the up-zoned residential zoning provisions. The documents were filed in the High Court on the 30th of September. > > Although these appeals may slow the period of transition of the Plan becoming operative, and some discussion remains around the amount of up-zoning and development provisions, the new operative Plan will likely provide a new set of planning rules and regulations for more intensity and density to facilitate the growth of the Auckland region. Number of Units Estimated Residential Capacity 450, , , , , , , ,000 50,000 0 Residential Zones Housing NZ Centres and Mixed Use New Urban Areas Rural Areas 213,000 14, ,000 31,000 19,000 34,000 PAUP as notified by Council 297,000 14, ,000 51,000 23,000 94,000 PAUP with Council's modified rule, no rezoning Source: Auckland Council Independent Hearings Panel 422,000 14, ,000 85,000 39, ,000 IHP recommended plan, includes modified rules and rezoning 400,000 Projected demand to 2041 Estimated Capacity by Zone and Area Capacity Source PAUP as Notified With Council's Modified Residential Rules, No Rezoning Recommended Plan RESIDENTIAL ZONES (EXCL HNZC) 33,592 93, ,339 Large Lot Rural and Coastal Settlement Single House 9,000 7,036 10,734 Mixed Housing Suburban 13,910 47,911 49,744 BUSINESS ZONES (EXCL HNZC) 30,828 50,511 84,732 Neighbourhood Centre 100 1, Local Centre 371 1,525 2,359 Town Centre 4,111 5,312 15,517 City Centre 13,316 17,227 13,121 NEW URBAN AREAS 115, , ,177 Future Urban Zone 115, , ,546 Live Zone ,631 RURAL ZONES 13,929 13,929 14,220 HNZC ESTIMATED DWELLING SUPPLY 19,000 23,000 39,000 ESTIMATED TOTAL DWELLING SUPPLY 212, , ,468 Source: Auckland Council Independent Hearings Panel 12

16 FABRIC OF ONEHUNGA Architect: Ashton Mitchell Developer: Lamont & Co Fabric of Onehunga 11 Spring Street, Onehunga, Auckland This former industrial site will make way for a new pocket neighbourhood with 239 apartments on a 1.29ha site. The architecture will reflect the light industrial heritage of the site complemented by extensive landscaped grounds. Apartments will be released in stages with completion expected in For more information contact: Alan McMahon National Director Research & Consulting Chris Dibble Director Research & Consulting Leo Lee Senior Research Consultant Elena Christodoulou Research Analyst Emily Duncan Research Analyst Aimee Simpson Research Co-ordinator Chris Farhi Director Strategic Consulting Caity Pask Senior Analyst Strategic Consulting Colliers International Level 27, SAP Tower 151 Queen St, Auckland Colliers International Research and Consulting offers a range of commercial and residential property solutions: Property Investment strategies Demand & Supply Studies Market Analysis & Forecasts Feasibility Analysis Catchment Analysis Lease Audit & Benchmarking Site Options Analysis Corporate Real Estate Strategy Financial Analysis Business Cases Whilst all care has been taken to provide reasonably accurate information within this report, Colliers International cannot guarantee the validity of all data and information utilised in preparing this research. Accordingly Colliers International New Zealand limited, do not make any representation of warranty, expressed or implied, as to the accuracy or completeness of the content contained herein and no legal liability is to be assumed or implied with respect thereto. All content is Copyright Colliers International New Zealand Limited and may not be reproduced without expressed permission.