Shortage sends buyers to Upper Hutt
Upper Hutt has seen a flurry of commercial property sales, signalling renewed interest in Wellington’s northern areas.
A shortage of industrial property in the Wellington, Lower Hutt and Porirua areas has turned eyes elsewhere, according to Tim Julian, a broker at Colliers International’s Wellington office.
Colliers has brokered five sales in Upper Hutt over the past month, two of which were sold to investors, two to owner-occupiers and another leased to a national logistics business.
The transactions represented ‘‘a big step up’’ in activity in the Upper Hutt commercial market.
‘‘They reflect a range of factors – in particular local roading enhancements, a lack of vacant space in other parts of the region, and the active development of residential property in Upper Hutt,’’ Julian said.
Unlike other areas, Upper Hutt still has industrial property in relative abundance and Julian said the recent activity was likely to be just the start of a pick-up in interest over the medium term.
Other factors include a string of compulsory acquisitions proposed by the Greater Wellington Regional Council at Melling for flood protection, which will take a number of commercial buildings out of the supply chain, and in Cornish St for the new Petone to Grenada road link.
Colliers estimates that between these two projects, some 60 businesses will be left needing to find new premises.
Also spurring on growth were residential developments at Kiln St, Silverstream, and the former Wallaceville Research land, where roading and services were being developed.