The week in New Zealand real estate - 20 August 2020

The week in New Zealand real estate 20 August 2020  hero

A weekly update of the biggest real estate news from around New Zealand.

Institutional investors

  • Fletcher Building has announced it will not pay dividends or executive bonuses after confirming a $196M net loss after tax for the year ending 30 June. The company posted a $246M profit last year. More info here.
  • Precinct Properties posted a $30.2M net profit for the year to 30 June. The result is down on last year's $190.2M profit primarily due to a $66.3M devaluation across its development portfolio. More info here.
  • Summerset posted a half year profit of $1M compared to $92.6M for the same period last year, primarily driven by asset devaluations. More info here.

Retail

  • Construction of New Zealand’s first Costco in Auckland could be delayed due to travel restrictions. The construction director needs to commute between Australia and New Zealand for the project. More info here.
  • Retail NZ is calling for landlords to agree to rent relief, especially in Auckland and where leases do not already have no access provisions. Many shopping centre leases and leases signed prior to 2012 do not have the provisions which are included in the latest Auckland District Law Society lease. More info here.

Housing

  • Reserve Bank data shows 83,500 home loan borrowers have used the mortgage deferral scheme. The scheme has been extended to 31 March 2021. Data also shows 10,905 mortgages are in arrears where the borrower was not part of the deferral scheme. More info here.
  • Modular homes built in China have been assembled at Hobsonville Point and are being sold from $650,000 each. The homes arrived at the Ports of Auckland in pre-fitted out container sections and craned straight into place on site. This achieves cost savings compared to traditional construction methods. More info here.
  • A dairy farm in Morrinsville is being transformed into an 860-home urban expansion over the next 10 years. Lockerbie Estate's first homes are on the market now. The development will also include a $100M retirement village. More info here.
  • Taranaki's largest iwi, Te Atiawa, is pushing ahead with plans to be a prominent property developer in the region with the sale on their first 14 sections. The sections are in the suburb of Fitzroy. Six are initially reserved for purchase by members of the iwi. More info here.
  • Wellington tenants can have the council carry out safety inspections on damp and mouldy homes under legislation recently uncovered from 1947. The council is then also required to help tenants with passing safety concerns to the Tenancy Tribunal. More info here.

Government

  • The Government has announced it will invest $200M into The University of Auckland’s new faculty of education and social work complex. The funding will allow the project to begin this year. More info here.
  • Canterbury’s regional council has purchased two heritage buildings that form part of the ‘Dirty 30’ site in Christchurch. The buildings include the Category 1 heritage listed Odeon Theatre. More info here.
  • Land Information New Zealand has launched LINZ Basemaps to give additional context to digital mapping for geospatial information specialists. More info here.

Related Experts

Chris Farhi

Director | Strategic Advisory

Auckland CBD

Chris is a Director within the Strategic Advisory team. The team helps you with your big property decisions and complex transactions.

Chris' advisory work focuses on:

  • Decision making processes (eg property strategy, business cases, feasibilities, etc)
  • Tenant representation for large lease transactions (office,  industrial and specialist-use)
  • Multi-site networks (eg consolidation strategies, optimisation, etc)

Chris’ background in brief:

  • Property strategy advisor for some of New Zealand’s most successful private sector, public sector and non-for-profit organisations.
  • Tenant representative (tenant-paid lease negotiator) for organisations ranging from small-to-medium enterprises through to major listed companies and government agencies.
  • Specialist skills in commercial leasing, financial analysis and market research.
  • Part-time lecturer at the University of Auckland Business School and commercial leasing trainer for the Royal Institution of Chartered Surveyors.

Chris’ qualifications include Honours degrees in both Civil Engineering and Property from the University of Auckland, and a Master of Philosophy from the University of Cambridge, UK. He is a Chartered Member of the Royal Institution of Chartered Surveyors.

Outside of work, Chris is a combat engineer in the NZ Army Reserve and a keen baker.

View expert

William Silk

Analyst | Stategic Advisory

Auckland CBD

William joined the Strategic Advisory team as an Analyst  in the Auckland CBD office in 2019, after completing studies at The University of Auckland. 

Specialising in reseasrch, reporting and analysis to support strategic commercial proprety decision making. 

View expert