Apartment buyers warned to do their homework as high density housing booms in Auckland

Apartment-buyers are being warned to do their homework amid news that consents for apartments or townhouses in Auckland outstripped those for standalone houses for the first time in 2017.

The construction pipeline report shows that as the housing shortage continues to bite, consents for apartments has outstripped those for standalone houses much faster than predicted.

Darren Brown, managing director of Auckland property developer Sugartree, says a big work stream of apartment construction is already underway.

"Whether that continues, I'm not sure. But we've got a big shortage of housing, we've got an issue to solve," he said. 

John Gray of the Home Owners and Buyers Association of New Zealand says there's now more acceptance by New Zealanders of living in smaller accommodation.

But with the growth in apartments comes warnings.

"People are buying off the plans and that can be a problematic exercise. So we urge people to get good legal advice and do their due diligence," Mr Gray said.

It's Wellington that's had the strongest construction growth.

Buildings Minister Jenny Salesa says the report projects about 43,000 houses being consented up until 2023.

"The last time that we had 40,000 houses being consented in Aotearoa New Zealand was in 1974," she said.

The construction sector is worth $37 billion and that's expected to increase to over $41 billion by 2023.

The report says growth around the country won't be as fast as thought even a year ago. Challenges for the sector include skills shortages and uncertainty around the Government's Kiwibuild programme and what that might mean for private developers.

"Until we know what that's going to be, it's hard as a private developer to get out there and commit to projects going forward," Mr Brown said.

And with a slowing housing market, will consents lead to actual homes to live in?

"In 15 years the consenting of residential houses in Auckland is the highest it's ever been," Ms Salesa said. 

For now though, Waikato, Bay of Plenty and Auckland are expected to keep growing out and up, with their housing.