Precinct Properties delays second tower at Auckland Downtown Carpark site on sluggish residential property market

Instead of the car park demolition beginning in this year’s final quarter, that had also been slightly delayed.

Precinct Properties’ plans for the former Downtown Carpark site, showing how its new development could look at ground level. Image / Precinct Properties

“We’ve made the decision to take a staged approach,” Pritchard said.

Yesterday’s full-year result had deferral details.

“Precinct has decided to adopt a staged approach to the development. This will result in the residential tower being completed later.”

Pritchard said demolition had been delayed four months.

“Demolition of the Downtown Carpark has been contracted to Built to do early contractor works. They have worked for a 12-month timeframe for early contractor engagement. We had planned to start demolition later this year, but that’s in April next year.”

The second tower is planned to be a 200-room hotel and a 145-unit apartment block.

Now only one tower: a new image of the planned 55-level building without the long-planned 45-level tower beside it. This is Precinct Properties’ amended plans for the Downtown Carpark site. Photo / Precinct Properties

It is that second block which Precinct will not build simultaneously with the taller first block.

“The residential market continues to be quite sluggish, so we have been questioning that over the last three to six months.”

No more 45-level tower: this new image shows only the 55-level tower to be developed on the Downtown Carpark site, Auckland, not the long-planned 45-level neighbour. Image / Precinct Properties

The 55-level tower is to have 94,000sq m of consented floor area and have floor plates of 1400sq m.

“For us, it’s about ensuring we have the confidence and conviction that the market conditions are right,” Pritchard said.

Only the taller 55-level tower will be built on what is now the Downtown Carpark site. The lower 45-level tower has been deferred. Image / Precinct Properties

Tower one would present as a finished urban environment, with structural capacity for the lower tower two to be incorporated in the podium building.

“This will maintain optionality for a future residential, commercial or hotel tower,” the Precinct investor presentation said.

The business plans two other suburban apartment developments.

Those are the $100m Pillars in St Marys Bay and the $160m DOVA project in Mt Eden.

Despite Pritchard announcing these some months ago, work has not started at Pillars or the Dominion/Valley Rd project.

A Precinct spokeswoman said: “No. No works yet.”

Precinct yesterday issued its full-year result.

Devaluations pushed the company to record an $8.2m net loss after tax, following last year’s $11m profit.

Operating profit rose from $152.3m last year to $162.7m in the year to June 30, 2026.

Pre-tax operating profit rose from $82.7m to $90.9m.

But devaluations amounted to $107.5m, a big rise on 2025’s $27.6m writedowns.

Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.

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