Rising tide of residential and commercial property sales in Christchurch

by Maya Breen07 Dec 2015
There’s been a steady rise in the number of residential property sales in Christchurch over 2015, the latest figures from Harcourts NZ Christchurch Market Watch for December show. 

Written sales were up 5.8% over November (471) compared to the same time last year (445), with the average sale price at $510,939, a 5% rise from $488,515 last year November. 

Although the total listings have dropped year on year, down 28.6% to 454, Christchurch Business Development manager Mike Mullen says it is great to see the number of sales in the region increasing through the year.

“We have a great market at the moment, in that it is presenting opportunities for both buyers and sellers. On the one hand there is plenty of choice out there for buyers, but also plenty of buyers to create competition and produce good prices for vendors.”

“It’s a great way to finish the year,” says Mullen. “We’re hopeful that, once the holiday season is over, February will continue to bring plenty of activity from both buyers and sellers.” 

“Huge year for commercial property” says Colliers International
Further data from Colliers International show investor interest in quality stock has no intention of easing.

Goodman Property Trust sold three new buildings in the city to a property fund managed by Mainland Capital for $38.9 million, soon after the biggest industrial property sale in the South Island ($39.525 million) this year and the largest office sale ($33.2 million). 

Colliers Christchurch general manager Mark Macauley said the investment property is drawing huge interest and doesn’t look to be slowing down anytime soon. 

“These are some of the biggest property transactions in New Zealand this year and investors from throughout the country clearly have an appetite for high calibre Christchurch property.

“The latest sale comprises three properties located in the Goodman-owned Glassworks Industry Park, Hornby and incorporates five blue chip tenants MOVE Logistics, DHL, Packaging House, Cirtex and Bridgestone. All the buildings were completed in 2014 to 100% of code and have a staggered lease expiry profile,” Macauley said.

Christchurch based fund manager and commercial property advisor Mainland Capital director Ben Bridge said the acquisition reflected confidence in the Canterbury economy and the industrial sector in particular.

“The quality of the asset and the diversification of multiple tenants and titles, had attracted investors to the fund. It is unusual to find a property that provides A-grade build quality, location and tenant mix with conservative rental levels. Our clients are sophisticated investors and were attracted to the medium to long term total return fundamentals,” he said. 

The sale of Progressive Enterprises Ltd’s distribution centre in Christchurch for $39.525 million to NZX listed Property Funds Manager Augusta Capital marks the biggest industrial property transaction in the South Island for 2015.

Augusta Managing director Mark Francis said the sell down was going “unbelievably well” and that the offer was nearly full.

“We see absolutely no sign of any reluctance to invest in a premium property and tenant such as this in Christchurch. The offer has attracted investors from all over the country. And an 8% return in this environment is very attractive.”

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