What’s happening in… Auckland, NZ?
NAI Global’s mission is to harness the power of an interconnected world, networking, partnering, and joining forces to create the largest independent broker organization in the world. For this series of blogs, What’s happening…?, we are exploring the ins and outs of a specific NAI partner location, starting off this week with Auckland, New Zealand.
NAI Harcourts is our partner in Auckland, New Zealand – the county’s most populous city and home to some 1.7 million people.
Auckland is built around two harbors and is situated towards the north of the North Island. It is a diverse city that functions as a hub of commercial activity and culture, accounting for some 38% of New Zealand’s economic output (GDP) and 36% of New Zealand’s paid employment.
According to the government’s immigration site, New Zealand Now, Auckland is “one of the world’s most livable cities, ranking third in the 2019 Quality of Living survey conducted annually by the global HR consultants Mercer. It’s held that slot since 2012.”
As a nation, New Zealand was relatively less affected by the Covid-19 pandemic, due to what has been characterized as excellent public leadership and cooperative citizenry. They have low unemployment generally, and growth in construction is credited with shoring up employment in the final quarter of 2020.
According to technology publication Stuff Magazine: “Several factors were attributed to keeping construction in surprisingly good form, including a big boost in infrastructure spending, the housing shortage, and record low mortgage rates which have led to the current rampant housing market.”
In terms of outlook, commercial real estate (CRE) in Auckland specifically, and New Zealand generally, is considered healthy and dynamic. It is, however, coming back from a contraction in 2020.
Office occupancy in Auckland did take a knock during the pandemic, and naturally, tourism-related property like hotels were vulnerable to the decline of visitors.
In the latest edition of their Key Assets publication, Andrew Bruce of the NAI Harcourts Auckland office writes: “Industrial property is definitely the most sought-after asset class, attracting the largest share of leasing and Investment activity. Fueled by low-interest rates, owner-occupiers are as active as investors, often competing for vacant properties with multi offers.”
He adds: “The opening of New Zealand’s borders and the restart of tourism will be a huge positive, allowing money to flow in and international buyers to re-enter the market. Caution is advised, but as always there will be a need to buy/sell and lease commercial property, and with this will come enticing new opportunities at every level. Low-interest rates will be the market’s savior, long may they continue to prevail.”
NAI Harcourts offers an extensive range of property and CRE services, including business brokerage, asset management, office leasing, and research. For more information, please visit https://naiharcourts.co.nz/