logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
New Zealand
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Hotels
      • Industrial & Logistics
      • Office Leasing
      • Retail
      • Self Storage
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt & Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Advisory
      • Property Sales
      • Structured Transactions and Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Valuation & Advisory
    • Services for Occupiers
      • Enterprise Facilities Management
      • Host
      • Leasing & Advisory
      • Portfolio Services
      • Project Management
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Office
      Industrial
      Retail
      Land
  • Research & Insight
    • New Zealand Research
      Asia Pacific Research
      Global Research
      COVID-19 INSIGHTS
      Insights & Expertise
      Talking Property Podcast
  • People & Offices
    • New Zealand Executive Committee
      Pacific Executive Committee
  • About CBRE
    • Careers
      Case Studies
      Client Tools
      Corporate Information
      Corporate Responsibility
      Investor Relations
      Media Centre

Previous

Press Release
The grass really is greener at 12 and 16 Andrew Baxter Drive

Next

Press Release
Market activity continues with strongest first half year in transactions in nearly five years
  • Home
  • About CBRE
  • Media Centre
  • Big deals in first half of the year highlight Wellington market’s strength

Big deals in first half of the year highlight Wellington market’s strength

Wellington | 6 October 2018
  • Email
  • Share
  • Tweet
  • Share

Wellington Commercial Property CBRE New Zealand

Demand for quality space across sectors and strong rents points to continued investor interest

Several large transactions and the level of offshore interest underpin a strong half year result of transactions for the Wellington property market according to a new report by CBRE New Zealand.

The half yearly MarketView Transaction Monitor report by the international real estate services agency details transaction volumes totalling in $426 million in Wellington as a result of 13 properties in the $5 million+ range changing hands.

Institutions are most prominent purchaser group at 55% of transaction volume or $236 million, well above the ten year average of 30% and the group also dominates on the vendor side accounting for 57% of market, followed by private investors at 43%. Overseas parties strong purchasers at 48% by volume.

With $146 million or 34% of sales volume, office was the largest transactional sector in the first half of the year in Wellington with the largest sale being HSBC Tower at 195 Lambton Quay which sold for $103 million to Credit Suisse.

Retail was the next largest transactional sector at 26% or $110 million and industrial sales at $31 million or 7% by sales volume.

On the vendor side, private investors sold $182 million or 43% of transaction volume which is above the ten-year average of 38% while institutional investors sold $243 million of property (57% of transaction volume) which is above on the ten-year average of 43%. Corporations accounted for $42 million comprising 20% of transactions volume, up from the 11% historical average.

Senior Analyst Richard Carr says the volume of transactions in Wellington for the first half of 2018 is a good indication of the buoyant market conditions currently.

”Wellington currently has an enviable position with strong forecasts supporting capital value appreciation. Activity in the market continues to demonstrate high levels of liquidity for Prime assets, with interest not only from local investors, but national and international investors alike.

“Current market returns in Wellington remain attractive to a wide range of investors, who have been driven in 2018 to secure stable income streams and asset diversification. With the strong rental growth experienced since the 2016 Kaikoura earthquake, many vendors are demanding strong initial yields, in order to capitalise on recent market performance.”

Managing Director Matthew St Amand says that international investors are active and engaged in the market.

“International confidence in the local market has been demonstrated not only by the likes of Credit Suisse expanding their Wellington portfolio in 2018, but the range of maiden international investors looking for opportunities to secure high quality assets. Attracting international capital in turn provides elevated liquidity and purchaser confidence encouraging further capital to follow suit.”
For New Zealand/international news or global stories, follow us on Twitter.

ABOUT CBRE GROUP, INC.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com..

Media Contacts

Adeline O'Connor
Adeline O'Connor
Associate Director - Marketing
New Zealand
Marketing & Communications
+64 9 359 5418
  • Corporate Information
  • Corporate Responsibility
  • Media Center
  • About CBRE
  • Careers
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Global Web Privacy and Cookie Notice
  • Complaints and Dispute Resolution Procedures
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Youtube
  • Facebook
  • Instagram
CBRE Limited and CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)