The market once booming with pre-sales is now nearly silent
Auckland faces a looming apartment shortage as the development pipeline has collapsed to levels not seen in over a decade, new industry figures reveal.
The number of apartment projects in Auckland’s pipeline has plummeted to just 54 in the first quarter of 2025, down from 183 projects at the market peak in late 2021, according to data presented at CBRE’s annual residential symposium.
CBRE director Tamba Carleton said the pipeline had not been this low since the third quarter of 2014, when there were 55 projects. However, the current situation is more concerning because only 27 of the 54 projects have units for sale, compared to 52 of 55 projects in 2014, a report from The Post highlighted.
“The projects that don’t have units for sale are social or build-to-rent or going to sell down closer to completion,” Carleton explained.
The shortage extends beyond future projects. Just 787 unsold units remain in the saleable pipeline, the lowest figure since CBRE began tracking in 2014. Typically, unsold stock hovers around 2,000 units.
Development uncertainty clouds outlook
Apartment pre-sales have also reached near-record lows, with only 12 recorded in the first quarter of 2025, up slightly from eight in the previous quarter. This represents a dramatic decline from the 400-plus quarterly pre-sales during the 2021 boom and the market peak of 699 pre-sales in the second quarter of 2015.
“There is definitely, 100%, a looming undersupply of apartments in Auckland, with a pipeline of just 3,020 units coming between 2025 and 2029,” Carleton said.
The apartment development sector has been particularly affected by the construction industry’s prolonged downturn. Carleton noted that around 20% of developments reaching pre-sale stage typically do not proceed, adding uncertainty to future supply.
However, she expressed cautious optimism: “I’d say the worst of the downturn is over, although we are not in recovery yet. There have been three project launches this year, and that is hopeful.”
The development focus has shifted from Auckland’s downtown to suburban locations. Current prominent projects include Pompallier on Ponsonby, Toi in Pt Chevalier, Chelsea Rise in Birkenhead, and Simplicity Living’s build-to-rent development on Ellerslie Racecourse land.
Only two central city developments remain active: the troubled Seascape tower, where construction recently resumed after a nine-month break, and the Symphony Centre, scheduled to begin construction next year.
Apartment Specialists director Andrew Murray told The Post that existing new stock from the Covid-era building boom remains available, selling at 20% to 30% below off-the-plan prices. This presents opportunities for buyers while posing challenges for sellers.
