JLL has released the New Zealand real estate market snapshots for the fourth quarter of 2022. The reports have focused on the office, industrial and retail markets, providing a bird’s-eye view of how they performed at the close of 2022, and what can be expected from 2023. The data was collected from Auckland, Wellington, and Christchurch.
Office real estate vacancies have decreased in Auckland and Christchurch in particular. The Auckland CBD has seen vacancies drop to 10.8 percent, from 11.6 percent, nearly 10,000 square metres of additional uptake. Vacancies decreased from four percent to 4.6 percent, approximately just below 2,000 square metres.
Wellington’s office market has remained supported by the government’s continuing demand for properties, even though vacancies increase across grades and regions. The Wellington CBD is also set for some new major buildings and precincts in the foreseeable future.
More than 3,500 square metres of office space was built in Christchurch, with further developments in the pipeline adding primarily prime space to the market.
The industrial market saw general decreases in the market, while net rents rose slightly per square metre in Auckland and Christchurch. The market remained stable for the third consecutive quarter in Wellington.
The development pipeline in Auckland and Christchurch has remained strong, however, a slowdown is expected, such as what has happened in Wellington. Over 50,000 square metres were added to the southern industrial district of Auckland, with another 330,000 square metres still yet to be completed.
In Christchurch, the investment market has been performing consistently in spite of rising interest rates. More than 28,000 square metres of space was completed in Hornby and Woolston, and developments in the greater Selwyn region as well.
Retail space has remained largely unchanged across Wellington and Christchurch. Auckland CBD prime retail decreased for the second quarter in a row by 4.2 percent to $2,300 per square metre, and incentives remained at eight percent. Bulk retail had a strong quarter, with rent growth up 7.69 percent, up 13.82 percent for the year.
Full reports for office, industrial and retail are available on the JLL website.