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Nearly 40,000 new townhouses have been built in eight years

July 26, 2024
in Business
Nearly 40,000 new townhouses have been built in eight years
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The seller wants $559,000 for this townhouse on Glengarry Road, Glen Eden.

Nearly 40,000 townhouses have been built since 2016.
Photo: Supplied

Changing taste and cheaper prices for buyers and better value for developers are driving the townhouse building boom.

CoreLogic’s latest report shows 39,600 townhouses have been built across the country since 2016, with more than half in Auckland.

It said that accounts for 45 percent of all new dwelling consents recently, compared to just 6 percent in 2012.

Chief property economist Kelvin Davidson said it was hard to tell if potential buyers wanted townhouses or if that was what developers are choosing to build – or if it was a bit of both.

“Society’s tastes have been changing a little bit, people wanting perhaps smaller dwellings without having to worry about maintaining a big section, so that’s been part of it.

“But also the economics have stood up from a development point of view, particularly as part of the unitary plan in Auckland if you can get a big section with an older house on it, you knock that house down and you put up three or four townhouses, which you can derive more value.

“And of course, they do come at that cheaper price so easier to tap into for people who are a bit cash-strapped.”

He said more townhouses on the market was a good thing.

“It intensifies our land, they can be built closer to existing infrastructure, roading, water, all of that, but also things like public transport. It seems to make a lot of sense and hopefully the government’s supply policy changes will continue to encourage that type of dwelling.”

Davidson said despite the housing market slowdown, townhouses were still a high share of construction and stock on the market.

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