Close
 

How New Zealand’s retail property sector is faring in 2016

  • Property
  • October 4, 2016
  • Elly Strang
How New Zealand’s retail property sector is faring in 2016

The report found that the New Zealand retail property sector is up against some challenges, but overall it’s faring positively.

It said positive economics conditions – including national house prices, strong population increases, and a booming tourism market – are helping the retail sector do well.

There are also more international retailers looking to claim a slice of the local market, while New Zealand retailers are keen to expand their store footprints.

Some of the key findings of the report were:

  • New Zealand’s rising house prices are changing consumers’ perceptions of the amount of money they have to spend. At the moment, the perceived boost in their wealth from property is encouraging them to spend more.
  • There has been a rise in new retail entrants to Wellington’s CBD, which has strengthened its market in less than 18 months. However, this demand means rents are rising and keeping up with this demand will be challenging.
  • Auckland’s vacancy rates are at near record lows. Construction is underway, but many key areas are still not servicing the demand enough.
  • In the regional areas, retailers locating themselves in a strong catchment while providing customers with the right product and service are experiencing the best outcomes. Landlords in these areas are aware of the difficult trading conditions retailers are operating in, but also have a need to increase returns.

Auckland

The report also found that retailers located in Auckland’s lower Queen St area, which is home to international luxury brands like Gucci, Dior, and R.M. Williams, are paying $700,000 a year or more for a shop space.

Auckland CBD’s vacant space is the lowest it has been in eight years, with only 3030 square metres of available space in the area.

Prime retail rent is now hitting between $1700 to $4200 per square metre, compared to Newmarket’s $800 to $2000 per square metre and Ponsonby’s $750 to $1350 a square metre.

Total CBD supply has also reduced by 10 percent while construction begins on the Downtown Shopping Centre. This has put pressure on the surrounding area, as retailers have had to move out of the centre and into different areas.

The Britomart space where Chanel and Tiffany & Co. are moving into are almost fully refurbished, which will satisfy some of the demand for luxury retail space in the CBD.

Beyond the CBD, demand is also spreading. Newmarket’s vacancy rates are at four percent, while Ponsonby Road’s are at two percent.

Wellington

Wellington’s CBD vacancies are up 8.9 percent, while its prime retail rents are between $1720 to $1855 per square metre on Lambton Quay, $753 and $1087 per square metre on Willis St.

A number of retailers are also signing up for new space, such as Platypus, Wittner and what Collier calls a “confidential major fashion retailer” as well as other international brands scouring around for a property to secure.

Christchurch

Christchurch is the second largest area for retail spending in New Zealand, making up 14 percent of the country’s retail spend.

Its prime retail rents at the city mall are between $650 to $1200 per square metre, while its CBD is between $600 to $800 per square metre.

The report found suburban retailers are setting up shop in locations with the strongest catchment, with areas with residential projects underway attracting retailers.

It also said opening announcements from international retailers such as Topshop are rallying the sector, with more announcements expected soon.

For more insights from the 2016 report and how other cities around New Zealand are faring, view the full report here.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Fit-Out: Retreat to the Wine Cave

  • News
  • December 15, 2017
  • Sarah Dunn
Fit-Out: Retreat to the Wine Cave

A wine retail outlet like no other opened in Auckland’s Newmarket in October. The Wine Cave is intended to create a subterranean-feeling, luxurious atmosphere that showcases high-end wine to its best effect.

Read more
 
 

Amazon is coming

  • News
  • December 15, 2017
  • Greg Harford
Amazon is coming

If there's one word that strikes fear into the heart of many Kiwi retailers, it's "Amazon". This massive global business has enormous scale; a turnover nearly two and a half times that of the entire New Zealand retail sector; and a share price of nearly NZD$1,400.

Read more
 
 

Back in Time: Kowtow

  • News
  • December 15, 2017
Back in Time: Kowtow

Created in 2007 by Gosia Piatek, Kowtow launched from a small home-based dream to one of New Zealand’s most respected ethical brands as it celebrates its first decade in business.

Read more
 
topics
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
Sisterhood
Women in retail help one another. We spoke ...
All things to all people
Kiwi retailers share their omnichannel strategies.
How to open a store
Sarah Dunn considers what it would take to ...
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
 
 
 
News

On the road with mobile payments tech

The past decade has seen a proliferation of pop-up shops, farmers’ markets, food trucks and temporary collective sale spaces. Rachel Helyer Donaldson explores how rising ...

 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita@tangiblemedia.co.nz or call 022 639 3004

View Media Kit

}