Figures

Christchurch Figures Q1 2023

March 6, 2023

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  • In H2 2022, there has been a modest increase in office vacancy due to yet to be occupied stock additions and a few tenancy contractions.
  • Retail spend in Christchurch was robust during H2 2022, helped by the arrival of international visitors. Prime net effective rents have been stable at the benchmarks established earlier in 2022.
  • The industrial market showed significant growth during H2 2022.  High demand for new and existing buildings meant that vacancy decreased significantly from its already low levels, accompanied by strong rental growth, both in the Prime and Secondary submarkets.
  • While the lack of transactional activity continues to hamper calls on pricing, the interest rate influence can not be ignored. CBRE’s assessment resulted in indicative yield increases of 50-110 basis points in 2022 across the various property sectors.  The indicative market average capital value declined 5.3% during 2022, 2.9% of which occurred in Q4.
  • The market expects that CPI will be back within the 3% target ceiling by H2 2024, but uncertainty remains on how quickly inflation may fall in coming quarters.