Commercial property market insights are certainly less predictable at the moment, with the higher cost of debt and even recessionary talk. So it was a good opportunity to get together with our peers and hear the latest outtakes. Thank you Property Council New Zealand for putting on this informative breakfast meeting at the Cordis Auckland. In summary, high inflation, increasing interest rates, tighter LVR’s and general uncertainties all continue to have an impact on the purchase of property (particularly residential). So it will be interesting to see the impact on commercial property. We are sure it will create some opportunities too, especially while demand continues to outstrip supply. Deals are down which is to be expected, but transactions are absolutely still taking place.
We believe it is too early to tell what kind of impact the above challenges will have on the overall market. There is always a lag before the full effects are realised, and there will be many investors in a strong position take advantage of a pessimistic market. Unemployment rates are still at an all-time low and consumer spending has not dipped as much as expected. Interesting times! We will be in touch soon with a full market review across the asset classes.
As always, if you would like to discuss the current market conditions in commercial property, please get in touch.