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The week in real estate development - 30 September 2021

NZ_AucklandCBD_StrategicAdvisory_The week in real estate development  30 September 2021

A weekly update of the biggest real estate development news from New Zealand and around the globe.

New Zealand real estate development news  

  • Government announces details for new builds for interest deductibility rules: The Government has defined what is considered a "new build" which are exempted from the interest deductibility rules. The definition states a property is considered ‘new’ for 20 years from the time its code of compliance certificate is issued. 
  • Kāinga Ora announces plans for transitional housing: Kāinga Ora has announced its plans to purchase thousands of prefabricated homes using off-site manufacturing (OSM) to address growing demand for transitional housing. The homes will be constructed abroad and shipped over as ready-built homes which meet the Healthy Home Standards and the Green Building Council’s 6 Homestar rating. The first two batches of OSM homes are expected to be built and shipped by late May 2022. 
  • Auckland Council announces plans to revitalise the city’s midtown: Auckland Council has announced its plans to revitalise Auckland CBD’s midtown. The $133M plans include the Victoria Street Linear Park, the refurbishment of Aotea Centre, and upgrades to Hobson street, High Street and Albert street. 
  • Amazon announces Auckland data centre investment plan: Amazon has announced it plans to invest $7.5B over 15 years building at least three data centres. Amazon's reasoning for choosing Auckland was due to the city’s telecommunications connections and skilled workforce. The investment is expected to create 1,000 jobs and contribute $10.8B to New Zealand’s GDP over the next 15 years. 
  • Kiwi Property announces go-ahead of BTR development: Kiwi Property has announced it will be developing a 295 long-term rental apartment complex at Sylvia Park. The $221M development will be the largest Build-to-Rent development within New Zealand. Kiwi Property is also seeking consent for 245 long-term rental apartments at LynnMall. 
  • Summerset Group receives consent for retirement village: Summerset Group has received consent for a new retirement village in Cambridge. The $150M village will consist of 260 two and three-bedroom villas and cottages, serviced apartments, care rooms and a purpose-built memory care centre for dementia residents. Earthworks are expected to begin this year with the village opening in 2023. 
  • Hotel plans for former John Britten site: A central Christchurch site formally owned by property developer John Britten is being sold to a new owner who has concept plans for a new hotel development. The sale is expected to settle in February.  
  • Cardboard Cathedral becomes permanent fixture: The Anglican Transitional Cathedral constructed out of cardboard in Christchurch has gained consent to become a permanent fixture. The cathedral was built in 2012 and 2013 under the emergency legislation as a temporary replacement for the damaged Christ Church Cathedral. The Christ Church cathedral is expected to reopen in 2027 after repair. 
  • Plans to revamp New Brighton and create beachside destination: There are various development plans to revamp the suburb of New Brighton and create a beachside destination. One of the latest development plans is a large complex called The Beach House which will consist of hospitality outlets, shops, and an events venue on the beach. The development is expected to begin construction early 2022 and open in November 2022.  

Global real estate development news  

  • Plans lodged for Broadbeach apartments: A developer has lodged plans for a 33-storey residential apartment development in Broadbeach. The development will include 46 apartments, a resident’s lounge on level 27, meeting rooms and work pods for residents working from home. 
  • Plans lodged for a new hotel in Mooloolaba: The Wagner family has lodged plans for a new hotel in Mooloolaba. The development includes 182 rooms, a 3-level podium with ground level commercial tenancies, and two levels of car and bicycle spaces. 
  • Waterloo office tower approved: A $160M over-station development has been approved as part of Sydney’s $900M Waterloo Metro Quarter development. The development includes a 15-storey commercial tower, a 2,200 sqm childcare centre and 2,200 sqm of public open plazas, retail laneways and community space. 
  • Plans announced for transformation of iconic Jam Factory: Plans have been announced to transform the iconic Jam Factory in Melbourne into a mixed-use precinct. The proposal for the $1.5B development includes a 1,700 sqm two-level plaza and amphitheatre for public civic space, four residential towers with 400 residences, a 5-star hotel with 180 rooms, 22,500 sqm of commercial space, 21,000 sqm of retail and entertainment space and a series of laneways. 
  • Developers lodge proposal for Hollywood commercial high rise: A proposal has been lodged for a 22-storey glass-skinned office tower in Hollywood, called The Star. The $500M development will comprise 46,451 sqm of office space, open garden levels on level 10 and 17, and a rooftop restaurant. 
  • Manhattan West development opens: The Manhattan West development, developed by Brookfield Properties has finished construction and opened to the public. The $4.5B development includes 650,321 sqm of retail, office, residential and hospitality space across six buildings. Constructed began in 2013. 
  • Construction begins on Houndshill Shopping Centre extension: Construction has begun on the extension of Houndshill Shopping Centre in Blackpool. The £21M extension includes a new 2,090 sqm Wilko hardware store, two restaurants on the ground floor of the new building and a nine-screen cinema on the first floor. Construction will be completed in 2022.

Contact property consultant Chris Farhi at Colliers Strategic Advisory to request an email notification for this weekly update.


Related Experts

Renee Lintott

Strategic Analyst

Auckland

Renee was the recipient of the Blair Hargrave/Colliers  Scholarship in 2019 before joining the  Strategic Advisory team as an analyst in the same year. Renee worked part time in the team for 2 years whilst completing  her tertiary qualifications and joined full time in mid 2021. 

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