NAI Harcourts commercial property sales are well up on last year but new listings are down

NAI Harcourts commercial property sales are well up on last year but new listings are down

NAI Harcourts sold 404 commercial properties throughout the country in the three months to July, a near 12% increase on the same three months of last year.

The total value of properties sold in the three months to July was $270.9 million, giving an average price of $670,433, a near doubling of the average price of $349,816 for properties sold over the same period last year.

NAI Harcourts general manager Michael Grainger said the strong rise in the value of sales occurred on the back of several speculative land deals in the last three months.

These would eventually see several new residential subdivisions being developed in Auckland, he said.

However while the volume and value of sales was up compared with last year, new listings were down by a third.

"That's a strong indication of tightness in the commercial market," Grainger said.

There was a lack of high quality stock to sell because potential vendors were tending to hold on to their properties to reap capital gains, which was frustrating potential buyers, he said.

People, were also being hesitant prior to next month's general election, but Grainger said he expected vendors would return to the market once the outcome was known.

Properties recently sold at auction by NAI Harcourts include:

• 9c Piermark Drive, Albany. A 516sq m office/warehouse with 12 allocated car parks on a new three year lease to a firm of geotechnical engineers, providing annual net rental of $83,000 +  GST. Sold for $1.12 million by Dave Lane of NAI Harcourts North Shore.
• 10/78-80 Paul Matthews Rd, Rosedale, North Shore. A 77sq m retail unit leased to Styleline Kitchens for three years for $21,540 + GST a year. Sold by Dave Lane of NAI Harcourts North Shore for $328,000.
• 7-9 Puke Rd, Paeroa. An underutilised 3499sq m site which fronts on to State Highway Two, with more than 600 passing cars a day. Three current tenants providing $46,500 + GST a year. Sold for $370,000 by Rex Hadley and Russell Smith of NAI Harcourts Hamilton.
• 31-35 Pururu St, Mangakahi, Rotorua. A 1078sq m industrial building with a 190sq m workshop extension, purpose built for current tenant Toll Networks NZ. Returning $70,000 + GST a year rand outgoings. Sold for $819,000 by Paul Sanford of NAI Harcourts Rotorua.