New Zealanders could see hundreds of millions of dollars’ worth of residential developments above shopping centres in the next 10 to 20 years, according to property, design, and research company RCG.
In its research publication Constructive Thinking, RCG documents the top 25 commercial trends across the property industry.
RCG says investment in hotels will grow again as New Zealand hotels are running at near full capacity. “Auckland, Queenstown, Rotorua, and Wellington are all experiencing strong growth in occupancy, some at record levels.”
“There’s a significant gap in New Zealand for resort and up-market hotels. Serviced apartments are also likely to expand aggressively.”
RCG has reviewed the influence of the ‘Grey Dollar’ on the property sector, and created an interactive map showing where the baby boomer generations are living.
“They earn a total of $40 billion – 35 per cent of the country’s income – and control close to 45 per cent of national wealth.”
Existing city schools will need to intensify to accommodate increasing student numbers, says economist and associate director, John Polkinghorne.
“In Auckland city, the pressure is most intense in Devonport, Waitemata, Albert-Eden, and Orakei.”
Brownfield sites close to Auckland’s inner suburbs are prime for mixed use development.
“There are a number of brownfield industrial sites which are now surrounded by homes and offices, with strong potential,” said Polkinghorne.
“There’s a third ring that wraps around the inner suburbs and CBD, and it’s a hot zone for new mixed use development.”
Constructive Thinking is published biannually; To subscribe to the free publication, click here.