Sales of commercial property in Christchurch’s CBD have risen by record levels as office sector workers return.
The return of white collar workers to the Christchurch CBD has resulted in record sales in the second half of last year.
CBRE’s first quarter 2017 Christchurch MarketView report reveals 41 percent of the $242 million in sales volume was within the office market with an increase in levels of transactions over $5 million.
This marks the highest level for Christchurch since post-earthquake, according to latest research published by the international real estate agency.
Building completions in Christchurch are estimated to be a total of 241,000 square metres, including space taken up by incoming international retailers.
The increased focus on the CBD does come at the expense of the suburban office market according to the report, with more backfill vacancy expected to occur in 2017 due to relocations to the CBD.
On the development front, the report indicates there is sustained activity particularly in the west of the city, as industrial occupiers look to expand and capitalize on land availability, low interest rates and business growth.
Business growth can also be attributed to new stores opening up in the heart of Christchurch, such as Mecca Maxima and H&M.
The record growth is now expected to stabilise, as it balances out with other contributing factors.