Christchurch Industrial Report | Second Half 2019

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  • Stronger market fundamentals continue to underpin the Christchurch industrial sector. Key to this has been the ongoing recalibration of the sector that has a more balanced demand and supply profile predominantly due to local businesses expanding and absorbing existing space. Further, a slight reduction in construction activity is assisting. Total building consent issuance for the year to September 2019 was approximately 219,000 sqm compared to a recent cyclical high of around 326,000 sqm in the year to September 2016.
  • Given the more positive market dynamics and low interest rate environment, investor activity remains strong. Prime average yields firmed 33bp between Q3 2019 and Q3 2018.Secondary average yields firmed a further 21bp.
  • Steady rents and sharpening yields have influenced average prime capital values to rise by 3.1 per cent in the past year. Secondary capital values are up 3.6 per cent.
  • The Q3 2019 Colliers International investor confidence survey found the industrial sector to achieve a net positive (optimists minus pessimists) score of 21 per cent. This is up from a net positive 16 per cent in Q3 2018.

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Christchurch Industrial Report | Second Half 2019

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