There is high demand for commercial property throughout Canterbury, and especially in Christchurch, where there is a shortfall of listings and fierce competition.
The number of people wishing to purchase both investment and owner occupier properties is far outstripping supply, says NAI Harcourts Grenadier commercial manager Ben Murphy.
The sub $1 million market is particularly hot with “mum and dad” investors exploring commercial opportunities off the back of sharply rising residential property prices.
On the flipside, the surge in investment means there are plenty of options available for tenants looking to lease commercial space.
Murphy says it is the same story across the country, with stock levels low because property is seen as an astute investment. This is underpinned by the low cost of money, further heightened by the recent OCR reduction to 2%.
“Across New Zealand the NAI Harcourts group is seeing huge demand for commercial properties from both investors and owner occupiers. Strong yields continue to surprise us with great results seen across the board.
“In Canterbury we have noticed a marked shift in more commercial property owners choosing to divest their stock through the auction process.
“This happens when there is high competition. Auctions let the market dictate the value of desirable properties, often resulting in excellent outcomes for our vendors.”
Murphy says in the past month several commercial properties sold at auction with strong, competitive bidding and reserve levels were far exceeded on the floor.
“If you are looking to sell your commercial interests, now is an ideal time to achieve a premium price for your property.”
NAI Harcourts Grenadier is the commercial and business broking division of the top South Island Harcourts franchise, Harcourts Grenadier. With a dedicated team of 35 professionals, the NAI team cover commercial sales and leasing as well as property management and business broking.