Offshore investment activity in our office sector has boosted overall transaction activity. Our underlying fundamentals relative to offshore markets are a key driver. We compare vacancy rates and yields in Sydney with Auckland and Wellington to showcase the reasons behind the latest surge in international attraction.
In 2017 and 2018, an aggregated NZD$3.2 billion of Auckland office transactions for property over $50m was recorded. This was a stand-out for two reasons. Auckland’s flagship office sector was receiving a significant amount of interest, and offshore investors were dominating activity with 85% of all purchases. While the latest surge in activity has been a standout, activity has been building for several years. It was 2014 when offshore interest started to take-off, which many will remember is also the year we were given ‘rock-star’ status.