Property market healthy but tourism sector lags

Strong interest and record prices are being achieved throughout the commercial property markets around New Zealand but some market segments are lagging, NAI Harcourts’ Commercial has reported in its third Key Assets publication for the year.

NAI Harcourts New Zealand general manager Tony Kidd says historically low interest and deposit rates, combined with reduced supply of investment stock, a shortage of appropriately zoned development and an increase in construction costs are contributing to the strong general state of the sector.

However, he says not all market segments are experiencing strong growth and prices. “An example is the tourism sector that has generally experienced a drop in asset values over the last 12-24 months, with revenue per available room being down on previous years,” he says.

Of the 25 properties, 16 are for sale, with the others providing excellent lease opportunities.

Properties include several new industrial developments under construction:

Units in 35 Peters Way, Silverdale, for lease by Rene Geertshuis and Geoff Thomas, with three of the four remaining units available.

Lot 7/96 Hobsonville Rd and Lot

88 Hobsonville Rd, for sale by Dan Lemkus and Marty van Barneveld, offering new industrial units (four in one and 15 in the other complex).

In Brent Greig Lane, Te Rapa, Hamilton, Theo de Leeuw has 15 offthe-plan units for sale offering liveand-work options. He and Debbie Ricketts are also marketing an industrial park in Quail Place, Frankton, with 13 tenancies returning $356,660 per annum plus GST.

Shannon Caldwell and Matt Webb are marketing a multi-unit investment (12 units) on two freehold titles, located on Hospital Hill, Napier, to be sold by tender, closing

19 August.