Commercial and Industrial Transaction Turnover Buoyant
Colliers’ annual national sales database for all commercial and industrial sales shows 2018 was another stand-out year, with the total value up 2.4% on 2017. A review of 2019 deals so far and an analysis of transaction activity over the past three decades provides interesting insight on the year ahead.
In New Zealand, the total number of commercial and industrial transactions in 2018 reached just over 4,860 properties, representing $9.9 billion in total
value. This is a couple of hundred short of 2017’s total turnover, but up 2.4% in total value. Given the lag in data reporting, total sales for 2018 could still shift up slightly.
Office was the stand-out sector for 2018. There were almost 600 sales representing $3 billion of transactions, the strongest annual result for office on record since our monitoring began in the late 1980s.
Industrial remains the stalwart of transaction activity. Around half of all transactions in 2018 were in the industrial sector, representing just under 40% of the total value. This is a similar occurrence year in, year out.
Despite the somewhat mixed market commentary surrounding retail property, sales turnover in 2018 was around 2%, representing almost $2 billion. This signals opportunities are still to be found.
Across New Zealand, the most transactions were recorded in Auckland, with around one third of transactions and a total value turnover of $5.5 billion. The next two biggest cities, Wellington and Christchurch, provided approximately one quarter of sales volume.
Christchurch sales activity was just shy of $1 billion in 2018 representing two thirds of the South Island’s total transaction value.
Sales activity in Wellington climbed from 9.4% of all transactions nationally in 2017 to 11.2% in 2018. Total value of sales activity reached $930 million in 2018.