New Zealand industrial market snapshot Q1 2022
JLL’s New Zealand Industrial Market Snapshots provide property insights into how the industrial and logistics market is faring within Auckland, Wellington, and Christchurch.
Our real estate market research is based on data from several reputable sources including on-the-ground insights from our own departments. Reading our property insights from the previous quarter will help to guide your property decisions in the quarters ahead.
The story of the industrial and logistics market for Auckland, Wellington and Christchurch is largely consistent. High demand and low availability of stock and limited opportunities for development continue to apply upward pressure on industrial rental rates.
Overall vacancy across the industrial precincts in Auckland has plummeted to 0.9%, with tenants competing strongly for quality space while secondary industrial and logistics assets are being targeted by add-value investors or developers. Prime yields for industrial properties held at the previous quarter’s historical lows of 5% but a slow upward movement is expected towards the end of 2022.
In Wellington, current market conditions give no indication of any significant increases in vacancy for the foreseeable future across all of the industrial precincts. While demand remains high, the last five years has seen little added to supply with just one more project for Wellington industrial currently underway. Consequently, vacancy, rents, and yields are all expected to remain largely consistent through 2022.
In comparison to Auckland and Wellington where land and investment opportunities are increasingly scarce, Christchurch has the potential to draw interest from a wider pool of occupiers and investors benefiting from a better, already identified and longer-term supply of land. We expect tight conditions will continue through 2022, with demand not expected to ease from both investors and occupiers.
Some of the questions answered in the latest report include:
- Are the record low vacancy levels among industrial stock expected to continue?
- How will increased interest rates affect the industrial property market?
- What industrial property developments are in the pipeline for Auckland, Wellington, and Christchurch?
Find out more below.