-small.png){kind=logo}
2019 NEW ZEALAND
PROPERTY OUTLOOK
2019 NEW ZEALAND
PROPERTY OUTLOOK
_______
Total annual sales value of commercial office, retail and industrial property in 2019 will fall just shy of the forecast $10 billion (NZD) year of 2018. This is due to additional legislative compliance and potential tax changes in 2019 that will add complexity, costs and time delays to the sales process. Approximately 85% of the properties that will sell in 2019 will have an asset value of $2m or under and be highly sought after by investors and owner-occupiers.
Numerous opportunities in the prop-tech space will emerge with the release of 5G-ready smartphones in 2019. Both landlords and occupiers stand to benefit from the advances in technologies that 5G unlocks. New Zealand will be geared up but waiting in anticipation as our 5G mobile network is only expected to be available in late 2020 at the earliest.
Total annual sales value of commercial office, retail and industrial property in 2019 will fall just shy of the forecast $10 billion (NZD) year of 2018. This is due to additional legislative compliance and potential tax changes in 2019 that will add complexity, costs and time delays to the sales process. Approximately 85% of the properties that will sell in 2019 will have an asset value of $2m or under and be highly sought after by investors and owner-occupiers.
Numerous opportunities in the prop-tech space will emerge with the release of 5G-ready smartphones in 2019. Both landlords and occupiers stand to benefit from the advances in technologies that 5G unlocks. New Zealand will be geared up but waiting in anticipation as our 5G mobile network is only expected to be available in late 2020 at the earliest.
2019 NEW ZEALAND
PROPERTY OUTLOOK
_______
2019 NEW ZEALAND PROPERTY OUTLOOK
_______
Total annual sales value of commercial office, retail and industrial property in 2019 will fall just shy of the forecast $10 billion (NZD) year of 2018. This is due to additional legislative compliance and potential tax changes in 2019 that will add complexity, costs and time delays to the sales process. Approximately 85% of the properties that will sell in 2019 will have an asset value of $2m or under and be highly sought after by investors and owner-occupiers.
Numerous opportunities in the prop-tech space will emerge with the release of 5G-ready smartphones in 2019. Both landlords and occupiers stand to benefit from the advances in technologies that 5G unlocks. New Zealand will be geared up but waiting in anticipation as our 5G mobile network is only expected to be available in late 2020 at the earliest.
Total annual sales value of commercial office, retail and industrial property in 2019 will fall just shy of the forecast $10 billion (NZD) year of 2018. This is due to additional legislative compliance and potential tax changes in 2019 that will add complexity, costs and time delays to the sales process. Approximately 85% of the properties that will sell in 2019 will have an asset value of $2m or under and be highly sought after by investors and owner-occupiers.
Numerous opportunities in the prop-tech space will emerge with the release of 5G-ready smartphones in 2019. Both landlords and occupiers stand to benefit from the advances in technologies that 5G unlocks. New Zealand will be geared up but waiting in anticipation as our 5G mobile network is only expected to be available in late 2020 at the earliest.
2019 NEW ZEALAND PROPERTY OUTLOOK
_______
2019 NEW ZEALAND
PROPERTY OUTLOOK
_______
Total annual sales value of commercial office, retail and industrial property in 2019 will fall just shy of the forecast $10 billion (NZD) year of 2018. This is due to additional legislative compliance and potential tax changes in 2019 that will add complexity, costs and time delays to the sales process. Approximately 85% of the properties that will sell in 2019 will have an asset value of $2m or under and be highly sought after by investors and owner-occupiers.
Numerous opportunities in the prop-tech space will emerge with the release of 5G-ready smartphones in 2019. Both landlords and occupiers stand to benefit from the advances in technologies that 5G unlocks. New Zealand will be geared up but waiting in anticipation as our 5G mobile network is only expected to be available in late 2020 at the earliest.
Total annual sales value of commercial office, retail and industrial property in 2019 will fall just shy of the forecast $10 billion (NZD) year of 2018. This is due to additional legislative compliance and potential tax changes in 2019 that will add complexity, costs and time delays to the sales process. Approximately 85% of the properties that will sell in 2019 will have an asset value of $2m or under and be highly sought after by investors and owner-occupiers.
Numerous opportunities in the prop-tech space will emerge with the release of 5G-ready smartphones in 2019. Both landlords and occupiers stand to benefit from the advances in technologies that 5G unlocks. New Zealand will be geared up but waiting in anticipation as our 5G mobile network is only expected to be available in late 2020 at the earliest.
OFFICE
____
INDUSTRIAL
____
The flexible workspace sector will forge ahead on its own growth path in 2019, undergoing a period of maturity in New Zealand. Landlords that focus on more traditional fixed-term leasing will try to diminish the disruption from the sector by embracing flexible workspace initiatives like tenant events and seminars, technology-based building and operating solutions and customer-centricity supported by community managers.
High-value office assets will receive strong interest from offshore purchasers that entered the New Zealand market in 2018 looking to expand their presence, but they will face stiff competition from new offshore entrants and locals spurred on by strong levels of tenant demand, rising rents and low interest rates.
Industrial precincts across New Zealand will experience an increase in occupier demand that will require a new wave of development activity in 2019. This will lead to one of the biggest years of uncommitted industrial developments commencing. This will prove fruitful.
As local economies grow, and the Government’s Provincial Growth Fund takes shape, the golden triangle of distribution and logistics activity between Auckland, Hamilton and Tauranga will become an elongated parallelogram reaching further north into Whangarei, south into Palmerston North and east into Hawke’s Bay.
RETAIL
____
RESIDENTIAL
____
Physical retail stores capture almost 90% of worldwide retail sales, according to eMarketer, but it will be a challenging year ahead for many retailers as online and offline competition mounts and discretionary spending becomes more selective in 2019. This will see a re-rating of retail asset values in 2019 with those likely to experience uplifts being the owners of assets with supportive demographic catchments, not overly weighted towards clothing and fashion and those transitioning into more experiential, entertainment and food and beverage offers.
Big name offshore retailers that have been waiting in the wings will dip their toes in the New Zealand market in 2019 with the opening of new retail centres at Precinct Properties’ Commercial Bay and Scentre Group’s new 277 Westfield Newmarket centre in Auckland. It’s hard not to expect the likes of Uniqlo, Muji, Apple and others finally setting up stores in these flagship centres and expanding our international retailer presence, but will 2019 be the year we get our first top-10 global retailer – Amazon?
Residential prices in regional centres outside of Auckland that have low unemployment and housing supply shortages will experience further price inflation, while Auckland will undergo an extended period of consolidation. This will have ripple effects throughout the development industry. A levelling off in sales prices and rates of sale with stubbornly high development costs will lead to a cyclical high in deferred and abandoned projects. This will counterproductively reduce future supply that is needed to unlock more affordable prices. While KiwiBuild will underwrite certain projects and enable supply, it’s not a long-term silver-bullet solution.
High house prices, positive attitudinal shifts towards renting and rising legislative and tax requirements on the ‘mum-and-dad’ Private Residential Sector (PRS) in 2019 will result in more companies entering the housing investment market. Following on from positive offshore experiences, this will drive purpose-built projects for long-term renting (known as Build-to-Rent or BTR) as well as investment vehicles and funds undertaking large scale investments of residential projects for Invest-to-Rent (IVR) products. While there are only a handful of these projects currently, the number will more than double in 2019.
HOTELS
____
AGRIBUSINESS
____
New Zealand’s tourism sector continues its strongest ever growth cycle. International visitor arrivals will surpass the 4 million milestone by the end of 2019. This surge in visitation numbers, coupled with relatively low levels of new supply entering the market, will drive record performance for hotel assets.
Hotel transactional activity is anticipated to increase in 2019 as investors take advantage of the last five years of strong trading conditions. Further new hotel development activity is likely to be announced, particularly in the tourism hotspots of Auckland & Queenstown.
Succession planning will be the number one influence on the rural and agribusiness sector in 2019, bringing with it a number of selling and purchasing opportunities. The value of land holdings and the work required are viewed differently than in the past and now is looking like a good opportunity to reap some of the benefits. The dairy sector will step out of the limelight in 2019 as it enters a challenging period in terms of land values challenged by higher production cost and lower dairy payouts.
Sheep and beef farming confidence will remain strong in 2019 due to solid export earnings driven by an accommodative exchange rate and growing global demand. Positivity in the Horticultural and Viticultural sectors will take another step up in what is already being described as a bumper year. Finding available land in areas with the right growing conditions will be an issue that could see land prices rise further.
OFFICE
____
INDUSTRIAL
____
The flexible workspace sector will forge ahead on its own growth path in 2019, undergoing a period of maturity in New Zealand. Landlords that focus on more traditional fixed-term leasing will try to diminish the disruption from the sector by embracing flexible workspace initiatives like tenant events and seminars, technology-based building and operating solutions and customer-centricity supported by community managers.
High-value office assets will receive strong interest from offshore purchasers that entered the New Zealand market in 2018 looking to expand their presence, but they will face stiff competition from new offshore entrants and locals spurred on by strong levels of tenant demand, rising rents and low interest rates.
Industrial precincts across New Zealand will experience an increase in occupier demand that will require a new wave of development activity in 2019. This will lead to one of the biggest years of uncommitted industrial developments commencing. This will prove fruitful.
As local economies grow, and the Government’s Provincial Growth Fund takes shape, the golden triangle of distribution and logistics activity between Auckland, Hamilton and Tauranga will become an elongated parallelogram reaching further north into Whangarei, south into Palmerston North and east into Hawke’s Bay.
RETAIL
____
RESIDENTIAL
____
Physical retail stores capture almost 90% of worldwide retail sales, according to eMarketer, but it will be a challenging year ahead for many retailers as online and offline competition mounts and discretionary spending becomes more selective in 2019. This will see a re-rating of retail asset values in 2019 with those likely to experience uplifts being the owners of assets with supportive demographic catchments, not overly weighted towards clothing and fashion and those transitioning into more experiential, entertainment and food and beverage offers.
Big name offshore retailers that have been waiting in the wings will dip their toes in the New Zealand market in 2019 with the opening of new retail centres at Precinct Properties’ Commercial Bay and Scentre Group’s new 277 Westfield Newmarket centre in Auckland. It’s hard not to expect the likes of Uniqlo, Muji, Apple and others finally setting up stores in these flagship centres and expanding our international retailer presence, but will 2019 be the year we get our first top-10 global retailer – Amazon?
Residential prices in regional centres outside of Auckland that have low unemployment and housing supply shortages will experience further price inflation, while Auckland will undergo an extended period of consolidation. This will have ripple effects throughout the development industry. A levelling off in sales prices and rates of sale with stubbornly high development costs will lead to a cyclical high in deferred and abandoned projects. This will counterproductively reduce future supply that is needed to unlock more affordable prices. While KiwiBuild will underwrite certain projects and enable supply, it’s not a long-term silver-bullet solution.
High house prices, positive attitudinal shifts towards renting and rising legislative and tax requirements on the ‘mum-and-dad’ Private Residential Sector (PRS) in 2019 will result in more companies entering the housing investment market. Following on from positive offshore experiences, this will drive purpose-built projects for long-term renting (known as Build-to-Rent or BTR) as well as investment vehicles and funds undertaking large scale investments of residential projects for Invest-to-Rent (IVR) products. While there are only a handful of these projects currently, the number will more than double in 2019.
HOTELS
____
RURAL &
AGRIBUSINESS
____
New Zealand’s tourism sector continues its strongest ever growth cycle. International visitor arrivals will surpass the 4 million milestone by the end of 2019. This surge in visitation numbers, coupled with relatively low levels of new supply entering the market, will drive record performance for hotel assets.
Hotel transactional activity is anticipated to increase in 2019 as investors take advantage of the last five years of strong trading conditions. Further new hotel development activity is likely to be announced, particularly in the tourism hotspots of Auckland & Queenstown.
Succession planning will be the number one influence on the rural and agribusiness sector in 2019, bringing with it a number of selling and purchasing opportunities. The value of land holdings and the work required are viewed differently than in the past and now is looking like a good opportunity to reap some of the benefits. The dairy sector will step out of the limelight in 2019 as it enters a challenging period in terms of land values challenged by higher production cost and lower dairy payouts.
Sheep and beef farming confidence will remain strong in 2019 due to solid export earnings driven by an accommodative exchange rate and growing global demand. Positivity in the Horticultural and Viticultural sectors will take another step up in what is already being described as a bumper year. Finding available land in areas with the right growing conditions will be an issue that could see land prices rise further.
OFFICE
____
INDUSTRIAL
____
The flexible workspace sector will forge ahead on its own growth path in 2019, undergoing a period of maturity in New Zealand. Landlords that focus on more traditional fixed-term leasing will try to diminish the disruption from the sector by embracing flexible workspace initiatives like tenant events and seminars, technology-based building and operating solutions and customer-centricity supported by community managers.
High-value office assets will receive strong interest from offshore purchasers that entered the New Zealand market in 2018 looking to expand their presence, but they will face stiff competition from new offshore entrants and locals spurred on by strong levels of tenant demand, rising rents and low interest rates.
Industrial precincts across New Zealand will experience an increase in occupier demand that will require a new wave of development activity in 2019. This will lead to one of the biggest years of uncommitted industrial developments commencing. This will prove fruitful.
As local economies grow, and the Government’s Provincial Growth Fund takes shape, the golden triangle of distribution and logistics activity between Auckland, Hamilton and Tauranga will become an elongated parallelogram reaching further north into Whangarei, south into Palmerston North and east into Hawke’s Bay.
RETAIL
____
RESIDENTIAL
____
Physical retail stores capture almost 90% of worldwide retail sales, according to eMarketer, but it will be a challenging year ahead for many retailers as online and offline competition mounts and discretionary spending becomes more selective in 2019. This will see a re-rating of retail asset values in 2019 with those likely to experience uplifts being the owners of assets with supportive demographic catchments, not overly weighted towards clothing and fashion and those transitioning into more experiential, entertainment and food and beverage offers.
Big name offshore retailers that have been waiting in the wings will dip their toes in the New Zealand market in 2019 with the opening of new retail centres at Precinct Properties’ Commercial Bay and Scentre Group’s new 277 Westfield Newmarket centre in Auckland. It’s hard not to expect the likes of Uniqlo, Muji, Apple and others finally setting up stores in these flagship centres and expanding our international retailer presence, but will 2019 be the year we get our first top-10 global retailer – Amazon?
Residential prices in regional centres outside of Auckland that have low unemployment and housing supply shortages will experience further price inflation, while Auckland will undergo an extended period of consolidation. This will have ripple effects throughout the development industry. A levelling off in sales prices and rates of sale with stubbornly high development costs will lead to a cyclical high in deferred and abandoned projects. This will counterproductively reduce future supply that is needed to unlock more affordable prices. While KiwiBuild will underwrite certain projects and enable supply, it’s not a long-term silver-bullet solution.
High house prices, positive attitudinal shifts towards renting and rising legislative and tax requirements on the ‘mum-and-dad’ Private Residential Sector (PRS) in 2019 will result in more companies entering the housing investment market. Following on from positive offshore experiences, this will drive purpose-built projects for long-term renting (known as Build-to-Rent or BTR) as well as investment vehicles and funds undertaking large scale investments of residential projects for Invest-to-Rent (IVR) products. While there are only a handful of these projects currently, the number will more than double in 2019.
HOTELS
____
AGRIBUSINESS
____
New Zealand’s tourism sector continues its strongest ever growth cycle. International visitor arrivals will surpass the 4 million milestone by the end of 2019. This surge in visitation numbers, coupled with relatively low levels of new supply entering the market, will drive record performance for hotel assets.
Hotel transactional activity is anticipated to increase in 2019 as investors take advantage of the last five years of strong trading conditions. Further new hotel development activity is likely to be announced, particularly in the tourism hotspots of Auckland & Queenstown.
Succession planning will be the number one influence on the rural and agribusiness sector in 2019, bringing with it a number of selling and purchasing opportunities. The value of land holdings and the work required are viewed differently than in the past and now is looking like a good opportunity to reap some of the benefits. The dairy sector will step out of the limelight in 2019 as it enters a challenging period in terms of land values challenged by higher production cost and lower dairy payouts.
Sheep and beef farming confidence will remain strong in 2019 due to solid export earnings driven by an accommodative exchange rate and growing global demand. Positivity in the Horticultural and Viticultural sectors will take another step up in what is already being described as a bumper year. Finding available land in areas with the right growing conditions will be an issue that could see land prices rise further.
2019 NEW ZEALAND
PROPERTY OUTLOOK
______
Total annual sales value of commercial office, retail and industrial property in 2019 will fall just shy of the forecast $10 billion (NZD) year of 2018. This is due to additional legislative compliance and potential tax changes in 2019 that will add complexity, costs and time delays to the sales process. Approximately 85% of the properties that will sell in 2019 will have an asset value of $2m or under and be highly sought after by investors and owner-occupiers.Numerous opportunities in the prop-tech space will emerge with the release of 5G-ready smartphones in 2019. Both landlords and occupiers stand to benefit from the advances in technologies that 5G unlocks. New Zealand will be geared up but waiting in anticipation as our 5G mobile network is only expected to be available in late 2020 at the earliest.
OFFICE
____
The flexible workspace sector will forge ahead on its own growth path in 2019, undergoing a period of maturity in New Zealand. Landlords that focus on more traditional fixed-term leasing will try to diminish the disruption from the sector by embracing flexible workspace initiatives like tenant events and seminars, technology-based building and operating solutions and customer-centricity supported by community managers.
High-value office assets will receive strong interest from offshore purchasers that entered the New Zealand market in 2018 looking to expand their presence, but they will face stiff competition from new offshore entrants and locals spurred on by strong levels of tenant demand, rising rents and low interest rates.
INDUSTRIAL
____
The flexible workspace sector will forge ahead on its own growth path in 2019, undergoing a period of maturity in New Zealand. Landlords that focus on more traditional fixed-term leasing will try to diminish the disruption from the sector by embracing flexible workspace initiatives like tenant events and seminars, technology-based building and operating solutions and customer-centricity supported by community managers.
High-value office assets will receive strong interest from offshore purchasers that entered the New Zealand market in 2018 looking to expand their presence, but they will face stiff competition from new offshore entrants and locals spurred on by strong levels of tenant demand, rising rents and low interest rates.
RETAIL
____
Physical retail stores capture almost 90% of worldwide retail sales, according to eMarketer, but it will be a challenging year ahead for many retailers as online and offline competition mounts and discretionary spending becomes more selective in 2019. This will see a re-rating of retail asset values in 2019 with those likely to experience uplifts being the owners of assets with supportive demographic catchments, not overly weighted towards clothing and fashion and those transitioning into more experiential, entertainment and food and beverage offers.
Big name offshore retailers that have been waiting in the wings will dip their toes in the New Zealand market in 2019 with the opening of new retail centres at Precinct Properties’ Commercial Bay and Scentre Group’s new 277 Westfield Newmarket centre in Auckland. It’s hard not to expect the likes of Uniqlo, Muji, Apple and others finally setting up stores in these flagship centres and expanding our international retailer presence, but will 2019 be the year we get our first top-10 global retailer – Amazon?
RESIDENTIAL
____
Residential prices in regional centres outside of Auckland that have low unemployment and housing supply shortages will experience further price inflation, while Auckland will undergo an extended period of consolidation. This will have ripple effects throughout the development industry. A levelling off in sales prices and rates of sale with stubbornly high development costs will lead to a cyclical high in deferred and abandoned projects. This will counterproductively reduce future supply that is needed to unlock more affordable prices. While KiwiBuild will underwrite certain projects and enable supply, it’s not a long-term silver-bullet solution.
High house prices, positive attitudinal shifts towards renting and rising legislative and tax requirements on the ‘mum-and-dad’ Private Residential Sector (PRS) in 2019 will result in more companies entering the housing investment market. Following on from positive offshore experiences, this will drive purpose-built projects for long-term renting (known as Build-to-Rent or BTR) as well as investment vehicles and funds undertaking large scale investments of residential projects for Invest-to-Rent (IVR) products. While there are only a handful of these projects currently, the number will more than double in 2019.
HOTELS
____
New Zealand’s tourism sector continues its strongest ever growth cycle. International visitor arrivals will surpass the 4 million milestone by the end of 2019. This surge in visitation numbers, coupled with relatively low levels of new supply entering the market, will drive record performance for hotel assets.
Hotel transactional activity is anticipated to increase in 2019 as investors take advantage of the last five years of strong trading conditions. Further new hotel development activity is likely to be announced, particularly in the tourism hotspots of Auckland & Queenstown.
AGRIBUSINESS
____
Succession planning will be the number one influence on the rural and agribusiness sector in 2019, bringing with it a number of selling and purchasing opportunities. The value of land holdings and the work required are viewed differently than in the past and now is looking like a good opportunity to reap some of the benefits. The dairy sector will step out of the limelight in 2019 as it enters a challenging period in terms of land values challenged by higher production costs and lower dairy payouts. Sheep and beef farming confidence will remain strong in 2019 due to solid export earnings driven by an accommodative exchange rate and growing global demand. Positivity in the Horticultural and Viticultural sectors will take another step up in what is already being described as a bumper year. Finding available land in areas with the right growing conditions will be an issue that could see land prices rise further.
Looking for more information?
For the latest news from Colliers International, visit:
Australia – colliers.com.au
New Zealand - colliers.co.nz
Follow us on Twitter:
Australia – @ColliersIntAust
New Zealand – @ColliersIntNZ
Or visit us on LinkedIn:
Colliers International
Looking for more information?
For the latest news from Colliers International, visit:
Australia – colliers.com.au
NZ - colliers.co.nz
Follow us on Twitter:
Australia – @ColliersIntAust
NZ – @ColliersIntNZ
Or visit us on LinkedIn:
Colliers International