While activity’s muted in the local office and retail sectors, industrial properties have continued to change hands and values have solidified, says David Tristram, a director in the firm’s local valuation and advisory services team.
"Since late last year we’ve seen investment metrics gather more strength in Queenstown industrial property, in contrast to the trend in most centres."
Queenstown industrial properties have continued changing hands at or below 5% yields — levels rarely achieved anywhere else since late ’21/early ’22.
He adds buyer demand and activity’s been concentrated in the sub-$5million price bracket, driven largely by owner-occupiers looking for premises.
He says buyers are attracted by significant rental growth over the past few years and are positive there’ll be more growth.
Some occupiers, especially in logistics, are moving to Cromwell where there’s more land and where there’s no impact on them shifting out of Queenstown, he adds.
In the office market, Frankton’s become the preferred location, he says, however, again due to limited space, rents have also increased.
CBRE research manager Jorge Chang Urrea says retail space in the CBD is also under very high demand, however rents appear to have stabilised or moderated, showing only limited growth since peak levels in ’23.
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