Christchurch is leading the commercial property market, featuring some of the country’s lowest vacancy rates.
Managing director of property firm JLL New Zealand, Todd Lauchlan, attributed this to post-quake developments.
“The whole city centre has been completely renewed, and there’s been a lot of domestic and international immigration down to Christchurch, so the confidence down there is pretty strong, and vacancy rates are falling, rents are going up, and demand is pretty strong,” he said.
A freehold property in the centre of Redcliffs’ commercial area has become available for redevelopment, presenting a rare opportunity for developers.
The empty former New World supermarket covers 2,796 m² on a prominent corner site, with a building size of 2,309 m².
Courtney Doig, Colliers’ director of investment sales, described it as one of the most important redevelopment opportunities to arise in the coastal community.
“This is a rare chance to secure a substantial holding in the heart of Redcliffs, and developers have the flexibility to exploit various options from retail and healthcare to community services or apartments,” she said.
In recent years, the waterfront suburb has undergone a transformation and is now drawing young families and couples.
Doig said Redcliffs remains one of Christchurch’s most desirable areas, known for its picturesque surroundings, close-knit community, and affluent residential population.
In contrast, Wellington has faced difficulties.
“A lot of the government sector has been retracting over the last 24 months, and that’s had an impact in terms of vacancy rates, so there’s a lot of vacancy in the office market there, and we’re expecting that to probably get worse before it gets better.
“That has led to a commensurate reduction in investment demand down there, and the prices have been relatively muted, so I think it’s probably the toughest market at the moment.”
Demand persisted, though not as strong as before, and occupancy rates stayed high.
Auckland continued to perform strongly, particularly in the industrial sector.
According to Lauchlan, 2023 and 2024 were relatively challenging years for commercial property, with volumes falling approximately 40% from peak to trough.
Since then, there has been a 5.4% year-on-year increase.
“We’re expecting it to be up another 5 to 6% this year.”
The market is expected to be in a recovery phase for the next 12 to 18 months, supported by interest rates declining from their peaks.
Lauchlan considers this as “a catalyst for investment, new development, and a bit more confidence in the overall economy in the overall sector.”