Study shines brighter light on NZ regions
CBRE has published comprehensive analysis of New Zealand's 12 key regiona lm arkets on its website, from Northland to Invercargill.
Capturing severa ld ata points across commercial office, industrial and retail property from December 2023, the real estate firm’s reports also provide an overview of market direction and property supply in ea ch c ategory.
“Our intention is for these reports to build a detailed picture of key movements in markets all around the country tha tm atter to occupiers and investors,” says Andrew Stringer, senior managing director of CBRE NZ.
Among the reports’ highlights,
Northland office vacancy rates are increasing due to a surplus of supply, although the prime A-grade office sector remains tight and is demanding premium rents. The industrial renta lm arket is resilient, a nd s ales remain robust for owner-occupiers.
Waikato is seeing a weak office investment market due to a misalignment of vendor and purchaser price expectations, while industrial property remains the strongest sector with stabilised yields over the last year, particularly for larger assets.
Rotorua’s robust industria lm arket shows overa ll v acancy levels of 3.1 per cent and low vacancy levels for prime offices, but demand for secondary and poorquality office space is limited.
Tauranga sees consistent rental growth in commercial office and industrial sectors. Its office market came through largely unscathed by Covid-driven disruptions, characterised by positive demand and low vacancy.
Hawke’s Bay’s property market showed commercial office space in Napier and Hastings in high demand, with record low vacancy rates and strong rental growth. However, Gisborne's office sector has high vacancy levels, although its industrial and retail sectors show strong performance and decreased vacancies.
Taranaki's commercial office market remains stagnant outside of the top tier of smaller, high-quality buildings. Steady growth continues in the industria lm arket, particularly for new builds, while the retail market is seeing a growing number of vacancies.
Manawatū analysis reveals increasing occupier demand for new large floorplate office premises in Palmerston North and the industria lm arket shows an upward trend due to strong demand, shortage of quality premises, and significant land value growth.
The dynamic Nelson property market shows an active office leasing market with rental uplifts across all grades and retail space conversions. The industria lm arket continues to perform well too.
Latest developments in Provincial Canterbury 'sm arket include the oversupply of office space in Timaru but strong leasing in North Canterbury. The rapid uptake of new development land in Rangiora is leading to increased land values and rental levels. The retail sector is also seeing new developments and record rental levels in Rangiora.
Otago’ s market has continued to grow post-Covid, with Dunedin CBD office rents increasing in line with strong demand for higher quality space and the economic rents associated with the development of new and refurbished premises. The industria lm arket has also performed well, although increasing cost pressures on occupiers have slowed expansion.
Queenstown data reveals that CBD office demand remains steady, while Frankton’s office market sees an upward pressure on renta lr ates due to increased tenant demand. The industrial sector in the Frankton and Gorge Rd precincts is seeing an uplift in rents. Retail is also experiencing rent growth in the CBD core.
In Southland, the over-supply of Band C-grade office spaces in Invercargill contrasts with limited availability of prime A-grade space. Industrial space shortages in Southland and Invercargill are driving rental growth.