A bumper auction where more than $11 million of commercial property sold under the hammer in one morning recently illustrates the strength of the Christchurch market.
Mark Macauley, General Manager of Colliers Christchurch, estimates a further $25 million in unsatisfied demand.
“We are continuing to see plenty of interested buyers at our auctions. The headwinds of rising interest rates and prevailing economic uncertainty are being countered by rental growth and low vacancy levels across all sectors of the market,” Macauley says.
“Yes, things are more challenging, but the commercial property market remains in a good position with savvy investors still seeing plenty of buying opportunities. They know it’s a good time to buy. If the right deal is there, they’ll be in.”
Start your property search
Of the seven commercial properties slated for an auction earlier this month, all but one has sold, either under the hammer or outside the room, as well as one pre-auction.
They included the former as is, where is Guardian Assurance House, that was bought by a local investor. Built in the 1970s, the seven-level building at 79-83 Hereford Street was once home to Scorpio Books and is already consented for two different uses – as a hotel or offices.
An as is, where is multi-purpose accommodation complex in the suburb of Mairehau, subject to a mortgagee sale, fetched $5.7 million.
A high-profile corner site at 472 Moorhouse Avenue sold for $1.09 million. Kennards Hire has been on the 1,382sq m parcel of land for the past 30 years but is now upsizing.
Macauley says the simplicity of an auction matches a willing buyer with a willing seller.
“Auction is an ideal way to transact properties. It allows all buyers an equal opportunity and sellers to achieve unconditional sales at the right market values.
“The beauty of auctions is that they provide certainty, transparency, sales that are cash and unconditional, and the seller sets the terms.”
The next Colliers Christchurch auction is set for 6 July and includes:
-Unit 24, 150 Lichfield Street. A post- earthquake central city office suite in a mixed-use development.
-208–210 Harewood Road. An established service station has been trading from the site since the 1960s, situated on 2,530sq m of land. Head leased to Z Energy.
-33A Coleridge Street. A vacant as is, where is industrial property in the well-established and popular CBD fringe suburb of Sydenham
- Article supplied by Colliers
