CBRE report shows rebound in commercial property sales

New Zealand’s commercial property investment market posted its strongest six months of sales activity in more than seven years in the second half of 2025, with Christchurch the country’s second-largest transactional market after Auckland.

CBRE’s H2 2025 New Zealand Transaction Monitor shows the total value of commercial property investment sales above $5 million reached $2.96 billion in the second half of the year, up 58% on H2 2024. It was also the highest half-year total since 2018. 

Deal numbers also rose significantly, with 138 sales completed nationally - the strongest second half since 2021 and 32% higher than H2 2024.

Transactions above $20 million were a major driver of the rebound, climbing to 38 deals worth $2.14 billion, up 40% by number and 90% by value over the second half of 2024.

While Auckland dominated the country’s commercial property transactional activity, Christchurch recorded $417 million of transactions in H2 2025 across 27 sales, ahead of its five-year six-monthly average of $334 million. 

Jorge Chang Urrea, Research Manager at CBRE, said the report also shows a good level of regional activity. 

“Outside Auckland, major transactions were concluded in Queenstown, Palmerston North and Hastings; as well as the nationwide Spark Data Centre portfolio which included properties in Hamilton, Tauranga, Dunedin and Invercargill in addition to Auckland, Wellington and Christchurch.”

Tim Rookes, Managing Director of CBRE Christchurch, said the figures indicate an encouraging recovery in investment market activity compared with previous years and support the increasingly positive sentiment around the South Island market, despite the economic uncertainty created by the Middle East conflict.

“Christchurch and the wider South Island are well placed as investment activity increases nationally. The Christchurch market is well supported by population growth, government infrastructure investment and solid occupier demand, providing positive fundamentals for investors looking to diversify their portfolios outside the North Island.”

The general mood in the Christchurch market remains constructive, Rookes added. 

“Right now the mood in the Christchurch commercial property market is generally focused on wanting to get on with things and not being distracted by the macro noise of the fuel crisis. This is encouraging, particularly with the election looming, which typically slows activity for a period.”

CBRE’s Transaction Monitor shows industrial property transactions led the market nationally in H2 2025, accounting for 27% of total sales volume, followed by retail at 21% and office at 11%. 

Another notable trend in the second half of 2025 was the return of offshore-backed deals. Net overseas capital inflow into transactions above $20 million reached $801 million, the highest since H1 2018 and close to three-and-a-half times the five-year average. Private investors and managed funds were the most active buyer groups, said Rookes.

“Capital is moving again, larger assets are trading and investors are regaining confidence in deployment. The obvious headwind to a continued recovery in transactional activity this year is the renewed uncertainty around interest rates. However the relative strength of the Canterbury and wider South Island economy, backed by key sectors such as primary industries, should help support investment levels through this period of uncertainty.”

Top 10 commercial property sales in New Zealand, H2 2025:

• Spark Data Centre Portfolio, nationwide, $551m
• Hotel Indigo, Auckland CBD, $160m
• The Plaza Shopping Centre, Palmerston North, $119m (pictured)
• Silverdale Centre, Auckland, $114m
• 22, 24 and 26 Durham Street West & 19 Victoria Street West, Auckland, $105m
• 39 Hugo Johnston Drive, Auckland, $60m
• 22 Irongate Road East, Hastings, $60m
• Frankton Ladies Mile Road, Queenstown, $59m
• Little High Eatery, Christchurch, $58m
• 100 Halsey Street, Auckland, $55m