Figures

Christchurch Figures Q4 2023

Christchurch Commercial and Industrial Market Overview

February 26, 2024 5 Minute Read

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Key Points: 

  • Christchurch continues to stand out as a healthy property market. One clear signal of this is the drop in vacancy across all tracked markets during H2 2023 (CBD office, suburban office and industrial) due to positive occupier demand and net absorption.
  • Industrial vacancy continues to be extremely low, sitting at 0.6%, down from 0.8% in H1. This market is benefiting from good rental growth, especially in the Prime submarket. Also, a healthy level of new supply could uplift industrial rents even more in the short term.
  • In terms of new stock during H2 2023, the CBD office market witnessed the introduction of one new office building (700 sqm) on High Street,  whilst the suburban office market saw the return of a refurbished Grade C building (863 sqm) in Riccarton. Also, the industrial market registered circa 32,300 sqm of new stock, scattered in four suburbs, with Hornby the main beneficiary.
  • The current yield cycle is reaching its peak. Based on CBRE’s assessment, the upward pressure on yields experienced in previous periods started to fade away in Q4 2023.
  • Despite the lagged effects of quantitative tightening on disposable income, retail spending in Christchurch continues to be robust, fuelled in part by a continuous healthy stream of overseas tourists.