Multiple properties were transacted in the auction room at Colliers in Auckland last week, signalling a positive end to the year as the commercial property market looks for a fast start in 2024.
Improving investor sentiment, a stabilisation of interest rates, and the ability for buyers and sellers to align their expectations are providing optimism to the sector, according to David Burley, Auckland Director of Investment Sales at Colliers.
The properties that sold at auction included a part-vacant unit title office in Mount Wellington and neighbouring retail investments in Parnell, owned by well-known local developer Kevin Harvey. The Parnell properties, located at 187 and 193 Parnell Road, were sold in one line to the same purchaser.
“These transactions also underlined the benefit of the auction process; unconditional offers were generated for our vendors,” Burley says.
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“We are also incredibly grateful for the professional services of auctioneer Robert Tulp who did an outstanding job.”
This auction room success follows a notable day for the Auckland Investment Sales team at Colliers who transacted three deals in one day in early November, which included a handful of prominent CBD properties, with many selling to owner-occupiers.
“Post-election we have seen an uptick in sentiment among buyers who have been eager to try and get deals done before Christmas,” Burley says.
“Anecdotally, the market is starting to bounce back following a period of relative inactivity where many prospective purchasers have remained on the sidelines for the past 12 months.
“The seeds have been planted for a quick start to the year in 2024 and we are confident we will present quality stock that will catch the attention of the market.”
Wednesday’s decision by the Reserve Bank of New Zealand to not change the Official Cash rate will likely have been welcomed by the property sector as they look ahead to their summer break.
That stability will provide market participants with some clarity as they examine their options for the year ahead, although the possibility of one further hike remains.
Reflecting on 2023, which has undoubtedly provided challenges such as extreme weather events through to the high cost of capital, a lack of properties coming to market, and rising inflation, Burley says there have been bright spots.
“Owner-occupiers have remained a popular type of purchaser for banks because they can borrow against the financial strength of their business, and we have seen these buyers remain active in the market as they seek high-quality offerings.
“We are excited for what the new year will bring and expect to see transaction volumes on the rise again.”
Article supplied by Colliers
