New Zealand industrial market snapshot Q4 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.
Stable occupancy rates and continued low vacancy are key factors driving rental growth in the logistics and industrial property market. For the second quarter in a row, prime industrial net rents have increased in Christchurch (by 3.8%), with a similar trend seen in Auckland. The most notable change was in south Auckland, where prime industrial rent increased by 5.6% ($10 per sqm), and secondary space increased by 3.5% ($5 per sqm). Natural competitiveness in the sector due to occupier demand, limited new stock in the pipeline, and increasing yields will continue to drive the performance of industrial assets into 2023.
Vacancy rates for industrial assets on Auckland’s North Shore lowered to 0.7% in the first half of the year, highlighting the demand in this precinct. A similar story is seen in the Wellington market where vacancy is below 2% (1.8%) largely due to local demand and a lack of available greenfield land for new developments.
Christchurch’s industrial pipeline is experiencing opposite conditions, with approximately 60,000sqm of industrial development due to be completed by the end of 2022, and a further 25,000sqm in the pipeline. These additions to the market drive the message that Christchurch is seen as an important investment market, performing consistently despite the rising interest rate environment.
Some of the questions answered in the latest report include:
- What developments are adding 60,000sqm to Christchurch’s market this year?
- Where is rent growth going to continue?
- What tightly held industrial precincts are experiencing sustained low vacancy?
Find out more below.