Over $200 million in sales of larger properties over first six months of 2018
The Christchurch market is experiencing sustained growth in transaction volumes, with much of the activity coming in the retail sector and led by private local investors, according to a new report by CBRE New Zealand.
The MarketView report by the international real estate services agency for the first half of 2018 details transaction volumes totalling in $204 million in Christchurch as a result of 11 properties in the $5 million+ range changing ownership.
The sales volume is up from seven sales in that category over the same period last year and demonstrates continued growth over the last five years.
With $104 million or 51% of sales volume, retail was the largest transactional sector in first half of the year with the largest sale being South City Shopping Centre at 551 Colombo Street which sold for $46 million.
Industrial was the next largest transactional sector at 30% or $62 million and office sales at $38 million or 19% by sales volume.
Much of the activity has been dominated by private investors accounting for 70% of total purchasing volume and selling $113 million or 56% transaction volume which is above the ten-year average of 40%.
Also, on the vendor side, institutional investors sold $22 million of property which is down on the ten-year average, and corporations sold $42 million comprising 20% of transactions volume, up from the 11% historical average.
Managing Director for CBRE in Christchurch, Tim Rookes says the number of transactions highlights confidence in the local market.
“What is most encouraging is the participation of national and international investors over the past 12 months. We are also seeing several new build CBD assets trading which is providing solid yield evidence to support transaction levels.
“The size of individual transactions has been consistent with no transactions above $50 million in the first half of 2018; which is not surprising with only been three sales in this price bracket in the last decade and with more newly constructed stock over the coming years the size of transactions should increase.”
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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..
