Report outlines market forecasts
The commercial and industrial property market in Auckland has remained resilient despite the impact of the latest COVID-19 restrictions, according to Colliers International’s (Colliers) latest report.
Colliers stated that the uncertainty brought by the COVID-19 restrictions in 2020 and 2021 did not hamper the interest of property investors and developers, with sentiment in the sector remaining positive despite Auckland’s extended lockdown.
“Since the Alert Level 4 restrictions were enforced in mid-August, we have transacted nearly 40 property sales across Auckland with a combined value of more than $250 million,” said Gareth Fraser, the director of investment sales at Colliers.
“Some of these transactions were conducted off-market, while others were able to take place because the campaign was launched far enough in advance of the lockdown to enable buyers to inspect the properties before the restrictions were in place.”
Fraser further explained that people now have better access to technology while working this year, contributing to improved productivity across the industry.
“While we experienced a degree of scepticism about the immediate future of commercial property during last year’s national lockdown, the market rebounded so strongly that investors are more relaxed and optimistic in this lockdown, meaning the market has remained strong,” Fraser added.
As the final quarter of 2021 approaches, Colliers claimed it does not see any signs of the market slowing down.
“October to December is usually the busiest time in the market as everyone focuses on the lead up to Christmas, but that will be pushed into overdrive this year due to the backlog caused by COVID-19,” Fraser said, adding that the eventual lowering of the alert level would most likely “inject more confidence back into a dynamic market.”
Moreover, Colliers’ recent research suggests that the impact on market activity should be limited in the short term, given that an increase in interest rates would likely be incrementally adjusted over the short term – providing a clear signal for an active market ahead.
“We look forward to a busy run until the end of the year. We have many campaigns ready to launch when Auckland moves to Alert Level 3 where inspections are possible,” Fraser said.