Austraila & New Zealand Commercial Property Market Divide Deepens
Sentiment within the New Zealand commercial property market has reached its highest level in 5 years, according to the latest regional report from the Royal Institution of Chartered Surveyors (RICS).
An increase in occupier demand and rental expectations have soared, as the New Zealand economy continues to pick up, with the construction industry tipped as a key driver over the next few years.
In contrast, the market in Australia is still working its way through moderate economic growth rates. Decreases in occupier demand and increasing vacancy rates have seen investor confidence remain low. Development starts are static, with the country's market woes compounded further by a slow down in rental expectations.
Kaye Herald, RICS Asia Pacific Managing Director, said: "With the New Zealand economy expecting to grow by around 2.6% over the course of the year to June and Australia's economy slowing in the second half of last year and looking to be below trend for 2013, the market has responded accordingly."
"While investor sentiment in Australia remains positive this quarter it is less than it has been previously. In New Zealand, the sentiment of investors is remaining at close to last quarter's highs," she added.