New Zealand retail market snapshot Q2 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 retail 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. While there are few sole retail developments in the pipeline in New Zealand, retail is a key component of several mixed-use developments comprising office, hotel or apartments.
Overall vacancy among retail real estate in the Auckland CBD decreased during the quarter, showing uptake of vacant opportunities as come to the market. The future of Auckland CBD retail will be supported by employees returning to the office, students to university and tourism. Demand has maintained for suburban retail with many consumers opting to shop locally while working from home.
With cases on the decline, Wellington’s “Golden Mile” extending from the Parliament end of Lambton Quay, along Willis St and through to Manners St to the eastern end and entertainment hub of Courtenay Place is expect to gain back its momentum after being hit hard by the reduced footfall. Average gross rents have held steady as have yields.
The outlook for retail real estate in Christchurch remains positive with continued low vacancy in both suburban and CBD precincts. With borders due to open and workers returning to the workplace, the CBD is set to benefit from an influx of footfall, while it is expected that suburban retail will continue to benefit from the ‘shop local’ philosophy for those that have adopted hybrid or remote working structures.
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.
