New Zealand retail market snapshot Q1 2022
JLL’s New Zealand Retail Market Snapshots provide property insights into how the retail 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.
Even though the retail property market continues to be one of the hardest hit industries from the pandemic due to enforced lockdowns and trading restrictions, increased leasing momentum indicates a positive direction since the pandemic made its presence known. There is however a continued divergence between location and quality.
While overall vacancy for the retail market in the Auckland CBD increased over the final quarter of 2021, leasing activity remains strong along the lower end of Queen Street and in Wynyard Quarter with new tenants taking over any vacancies as they come to market. Suburban retail in Auckland has undergone a recovery with vacancy dropping with a strong development pipeline set to deliver new supply.
Low foot traffic in Wellington’s CBD and the growth in e-commerce continues to impact vacancy, although a lack of new supply in the pipeline is expected to keep things relatively consistent. Average rents have remained unchanged since the first half of 2021, with no significant transactions in Wellington’s retail market taking place in 2021.
The Christchurch retail market sentiment has been a positive story throughout 2021, due to the less restrictive lockdowns. What is uncertain for Christchurch in early 2022, is the level of any future impact, with retailers now operating under the new ‘traffic light’ system, there is a sense that with the borders opening the CBD’s foot traffic will reduce with impacts of Omicron.
Some of the questions answered in the latest report include:
- What are some of the challenges facing the retail markets in New Zealand?
- How are average retail rents and yields faring?
- What retail projects are in the pipeline for Auckland, Wellington, and Christchurch?
Find out more below.