Figures

New Zealand Transaction Monitor Q1 2024

New Zealand Investment Market Activity Overview

March 5, 2024 6 Minute Read

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Key Points:

 

  • In H2 2023, the total value of commercial investment transactions in New Zealand reached $1,633 million across 73 sales.  This result is consistent with the first half of the year and down on the average sales volumes of the past decade, exposing an ongoing wide bid-ask gap and high cost of debt environment.
  • The student accommodation sector was the most active during H2 2023 due to a portfolio transaction, followed by development site/land and office sales. Industrial sales were more subdued compared to previous periods.
  • Managed fund investors, both as sellers and buyers, were the most active during H2 2023, followed by privates and listed property vehicles. However, during H2, only private investors were net buyers, breaking a six-year trend during which private investors were net sellers.
  • Overseas investor activity returned to the net negative sphere in H2 (by $12 million), the first time since the second half of 2021.  Institutional investors led overseas purchasers, mainly from North America and Hong Kong SAR.