The commercial property market took a cautious pause in the lead up to September's general election, according to NAI Harcourts.
NAI Harcourts is the commercial real estate arm of Harcourts and its latest sales figures show a 6.9% drop in the number of sales and a 7.7% decline in the total value of properties sold in the three months to October, compared to the same period last year.
General manager Michael Grainger said that result was expected as things started cooling in the lead up to the election.
However there had since been a pick up in inquiry and he expected sales to finish the year strongly.
So far this year NAI Harcourts had sold $706.3 million of commercial properties which was up 30% on the same period last year, reflecting the company's strong overall growth.
Grainger said there was currently strong demand for modern, well leased properties and a shortage of quality investment properties was a predominant feature of markets throughout the country.
Sales of large office properties were running close to levels not seen since the last boom in 2005-2007 and vacancy rates in the office leasing market were continuing to fall, with prime office vacancy rates in Auckland at record lows.
There was also strong demand for development land for both residential and commercial use and such properties were highly sought after by developers and land bankers, Grainger said.
This country's stable economy and growth were continuing to attract overseas investors, he said.
| October 2013 | October 2014 | Change % | |
| New listings | 1064 | 1083 | 1.8 |
| Number of sales | 390 | 363 | -6.9 |
| Total value of sales | $164.7 million | $152 million | -7.7% |
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1 Comments
If you thought Asians were buying up all the houses at auctions , just go to a Commercial Property Auction.
It might as well be held in China , I was the only Caucasian at the one where some small retail units were being sold under the hammer recently .
At many of the commercial auctions ................ not one Kiwi bidding .......... NOT ONE !!!
ZERO , ZIP , NOTHING , NADA, NUL
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