CBRE has published comprehensive analysis of New Zealand's 12 key regional markets on its website, from Northland to Invercargill.
Capturing several data 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 each category.
“Our intention is for these reports to build a detailed picture of key movements in markets all around the country that matter to occupiers and investors,” says Andrew Stringer, Senior Managing Director of CBRE NZ.
“Not only are we shining a brighter light on key rent and yield data points in markets outside the main centres than has previously been on offer, but we also provide an overview of how we see the direction of each market moving forwards.”
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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 rental market is resilient, and sales 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 industrial market shows overall vacancy levels of 3.1% and low vacancy levels for prime offices, but demand for secondary and poor-quality 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 industrial market, 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 industrial market 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 industrial market continues to perform well too.
Latest developments in Provincial Canterbury's market 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 industrial market 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 rental rates due to increased tenant demand. The industrial sector in the Frankton and Gorge Road precincts is seeing an uplift in rents. Retail is also experiencing rent growth in the core of Queenstown’s CBD.
In Southland, the oversupply of B and 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.
- Supplied by CBRE
