• During H1 2022, office occupier activity in the CBD took a breather following the high absorption of the past couple of years, while the suburban market has been very active with 73 new occupancies totalling more than 25,000 sqm.
  • Despite the Omicron impact, retail spend in Christchurch increased during H1 2022 and the Prime retail submarket registered a rise in net effective rents.
  • The industrial market delivered 33,300 sqm of new stock in H1 2022.  Positive demand for both new and existing buildings meant that vacancy decreased from its already low levels, and this was accompanied by both face rental growth and a reduction in incentives.
  • The inflationary hedge nature of property is starting to come into play, with favourable supply and demand dynamics, higher construction costs and CPI based lease rent review mechanisms contributing to healthy rental growth.
  • While inflationary pressures and higher interest rates continue to soften market yields across most sectors, we are also seeing signs of ‘normalisation’ in the market with the interest rate curve, and growing activity from market-aligned buyers, and more importantly sellers.