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, the company documents its 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.
The publication outlines Auckland, Queenstown, Rotorua and Wellington all experiencing strong growth in occupancy, some at record levels, and that there is a significant gap in New Zealand for resort and upmarket hotels. Serviced apartments are also likely to expand aggressively.
RCG has reviewed the influence of the “Grey Dollar” on the property sector, and has created an interactive map showing where the baby boomer generations are living.
The company notes that “baby boomers” earn a total of $40 billion — 35% of the country’s income — and they control close to 45% of national wealth.
Existing city schools will need to intensify to accommodate increasing student numbers, according to economist and associate director John Polkinghorne.
“In Auckland, the pressure is most intense in Devonport, Waitemata, Albert-Eden and Orakei,” he says.
The company says 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. 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. For more information on RCG, visit www.rcg.co.nz.