New Builds Are Evolving - No More Shoe Boxes!
Over the past few months, I’ve been talking with a number of developers, and there’s a clear trend emerging: developers are no longer building the “shoe boxes” of the past. Instead, the focus is shifting toward more spacious, thoughtfully designed homes that better meet the needs of today’s buyers.
A Recovery on the Horizon
The wider residential market is showing early signs of recovery. Independent forecasters predict house prices will rise over the next two years, with stronger sales volumes already emerging. While prices remain relatively flat at the moment, lower interest rates are boosting buyer confidence and are expected to be the key driver of short-term market activity.
Globally, uncertainty around tariffs and trade remains a backdrop, but locally, developers are optimistic, with many planning new projects that promise to break away from the standard “affordable but cramped” model.
Understanding the Modern Buyer
According to Bayleys’ survey of townhouse buyers, affordability and low maintenance continue to be key drivers. However, buyers are increasingly looking for more than just a low-maintenance space—they want designs that avoid disruptions from neighbours, offer adequate parking, and provide comfortable living spaces. Interior cooling, ventilation, and electric vehicle charging are features that are becoming higher priorities for buyers in coming years.
The Next Cycle of Development
The next development cycle is likely to see a pivot away from purely affordable options toward higher-end product. We’re already seeing developers move from three-level townhouses to two-level designs, creating more spacious homes with higher-quality finishes. The message is clear: size, comfort, and style are making a comeback.
Standing Out in a Crowded Market
With townhouses now representing 42.5% of all new homes consented, developers are finding innovative ways to stand out. Some are offering high-spec accessible homes for younger downsizers, compact standalone townhouses for buyers wanting their own land, and character-filled designs for those seeking a cosy, unique home.
Expanding Horizons
Townhouses are no longer confined to major metropolitan areas. While off-the-plan sales have been strong in Queenstown and moderate in Christchurch, they’ve been sluggish in Auckland. Meanwhile, developments are emerging in previously untapped areas such as New Plymouth and Dunedin, expanding opportunities for buyers across the country.
What This Means for Buyers
Typical three-bedroom, two-bathroom townhouses are now around 105–138 sqm, with asking prices ranging from $5,833 to $7,646 per sqm (stats from 1 July 2024 – 30 June 2025). Buyers can expect more thoughtful layouts, better finishes, and designs that reflect modern living needs rather than the compact “shoe boxes” of the past.
The takeaway is clear: new builds are evolving, and the focus is on creating homes that are not only functional but genuinely enjoyable to live in. If you’ve been waiting for the right moment to invest in a new property, the market is moving, and developers are listening.
