New Zealand retail market snapshot Q4 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.
Following a whole year of unchanged prime average net rents, Auckland CBD saw a lowering of 6.8% ($175 per sqm) due to the slow rebuilding of city centre foot traffic following the lifting of pandemic restrictions. There remains international interest from retailers in the Auckland CBD, however this interest is pushing into 2023 with some key brands intending to come to market as we experience higher CBD populations across Auckland, Wellington, and Christchurch.
In the Wellington retail property market (CBD and southern CBD), vacancies continued their positive (downward) trajectory, dipping below 10% to sit at 9.1% (a change of 4%). With more than $200 million in the Wellington CBD pipeline due to be completed in 2023, retail continues to be a small component of the developments.
Christchurch continues its stable rent outlook, with prime retail space remaining unchanged at $575 per sqm since the third quarter of 2020. Similarly, secondary retail rates have remained steady at $315 per sqm since the beginning of 2021. Mixed-use developments that include notable retail space around Gloucester Street, Victoria Street, High Street, and Cashel Street highlight the strength of the Christchurch market and indicate to stable performance for the beginning of 2023.
Some of the questions answered in the latest report include:
- Where are key developments in the retail pipeline and how will they affect the market?
- What’s driving the resurgence in the Christchurch retail market?
- How are rents being affected in Auckland now that borders are open, and tourists are expected to boost foot traffic?
Find out more below.