More Auckland offices becoming apartments

(Newshub.)
(Newshub.)

Auckland's housing shortage is impacting on the commercial sector, with an increasing number of office buildings being turned into apartments.

Bayleys senior researcher Ian Little says it fits well with Auckland Council's push for more apartment living

"We've seen very much a strong trend of that happening. Some of the older commercial stock which perhaps had low occupancy levels have been taken out of that office market and converted to apartment use."

Mr Little says most commercial development is now being pushed to the edges of the city because land around inner suburbs is too expensive.

"That's put the pressure on the office sector as well, of course we've seen the development sector starting to respond to that now with a number of new schemes that have been recently completed."

The overheated property market is prompting property developers the Chow brothers to look elsewhere for new investments.

The pair owns hundreds of millions of dollars' worth of commercial property across New Zealand.

"I'm more focused at the moment on the regions -- Tauranga, Queenstown and Nelson," John Chow says.

"From my personal point of view, definitely the prices [in Auckland] are getting more expensive."

Mr Chow says by 2020 he wants at least a third of his portfolio to be outside of Auckland and in the regions.

Newshub.