New Zealand Research Report - July 2019

Half year health check

The first six months of 2019 have finished. We recap how commercial and industrial markets have performed so far and what could be in store for the remainder of the year.

In January 2019, expectations for growth were starting to emerge after a rough patch in global political, economic and financial concerns at the end of 2018. By February, there was less global political tension and a dovish interest rate announcement from the US Federal Reserve due to lower global growth rate predictions. This led to a renewal in the search for yield and investor interest was amplified.

Locally, the rejection of a Capital Gains Tax (CGT) in April refreshed confidence, and by May, purchaser enquiry was well and truly back on track. The top right chart shows how the NZX50 and property companies surged ahead in the first six months of 2019. Direct property sector results were strong with average rents up between 3% and 5% p.a. and average yields had firmed by between 15 bps and 25 bps. Alongside these positive investment metrics were the historically low vacancy rates and a relatively balanced supply pipeline.


MonthlyJuly2019

New Zealand Research Report - July 2019

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Chris Dibble

Director | Research & Communications

Auckland CBD

Chris Dibble oversees the delivery of award-winning research reports, PR and Communications for Colliers International New Zealand. With over 13 years of experience and university qualifications in economics, geography, marketing and property, Chris has a  multi-disciplinary approach that assists a broad range of clients in their strategic decision making. Chris is a regular presenter and market commentator with an extensive network of media contacts to discuss the latest insights on current and future property trends. Chris also works with in-house and external writers to curate an audience-focused content delivery strategy for Colliers.

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Alan McMahon

National Director | Strategic Advisory

Auckland CBD

Alan has overall responsibility for Strategic Advisory for Colliers International in New Zealand. 

He advises a wide range of public and private sector organizations. Clients include Auckland Council,  Progressive Enterprises, Massey University, Ngai Tahu Property, Ngati Whatua Orakei, Ngati Whatua o Kaipara, and various departments of the New Zealand government including Police, MBIE, Callaghan Innovation and Housing New Zealand.

 

 

 

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