Ockham pivots entire Point Chevalier project to rentals
Every apartment in a new Auckland development will be rented rather than sold, as developers adjust to sluggish housing demand.
Ockham Residential confirmed that all 77 units at its Whetū project in Point Chevalier will be leased under a build-to-rent model.
“The market is a lot slower than previous years,” Ockham CEO William Deihl (pictured) told RNZ. “We’ve been in a recessionary sort of environment for quite some time now, but it’s come to a head over the past couple of years.”
Interest rates and build-to-rent shift
Deihl said the company has delivered build-to-rent projects before, but the slow sales environment and interest rate settings tipped the balance.
“It’s really dictated by the sales market and interest rates. The OCR has been quite sluggish with coming down and hopefully there’s a big drop to come,” he said.
He added that industry discussion around build-to-rent has accelerated over the past four years, making it a logical option for Whetū.
Benefits for tenants
Deihl highlighted the stability of having a single landlord manage the entire building.
“When people are renting an apartment from a solo owner, they don’t get the same security that you get when you have a single landlord over the space,” he said. “It’s something that we have done for a long time, and we think it’s a good offering.”
Studios at Whetū will rent from $500–$580 a week, while two-bedroom units are priced between $700 and $780.
Market pressures
Deihl noted that while Auckland’s apartment market has seen a surge of high-end projects, the more affordable segment remains under-served.
“There’s not a lot going on in this relatively affordable apartment market that we are doing,” he said.
Fresh data backs this trend. Trade Me reported that Auckland’s median rent eased 2.2% year-on-year to $660 in August, but demand remains strong compared to other regions.
At the same time, REINZ data shows Auckland’s median property price lifted 1.3% year-on-year to $964,000 in August, while sales fell sharply – down 11.3% from July and 1.3% from a year earlier. The combination of high prices and subdued sales activity is making renting a more practical option for many households, supporting the build-to-rent model.
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