The first six months of 2019 confirmed the attractiveness of the Auckland property investment market from a wide range of local and offshore investors.
- Over 50 transactions were recorded in the $5 million plus market with a total value of about $1.4 billion.
- Yield firming is ongoing. In the office sector, the first half of 2019 produced an average 10 basis point firming.
- Cap rate firming also continued in the industrial sector, especially in the Secondary grade quality segment, where yields are now just a touch above 6%, on par with Grade A office yields in the CBD.
- Retail yield performance has been more mixed with Prime strip retail yields in the CBD still firming while shopping centre yields across all types and Broadway yields softening in the first two quarters of 2019.
- As far as rents are concerned, Suburban office rents in the Grade A and B quality segments have experienced the strongest growth in the first six months of the year.
- Changes in CBD office and retail rents have been patchier with some grades and typologies increasing while others falling in the first half of 2019.