• Christchurch has seen the rate of capital value decline slowly, and with limited supply expected to be completed moving forward, occupancy risk and vacancy rates should start to become more favourable to landlords.
  • Yield compression is still likely given the current economic climate and the recent reductions to the OCR rate.
  • There was an estimated $200m of transactions which have occurred in the first half of 2019.
  • The development of the Spark Building and the Farmers Market will continue to increase the density of economic activity in the CBD.
  • While the cost of debt may be cheaper than ever, there is some impediments to availability of debt from traditional banks.
  • CBD activity in Christchurch continues to increase, which is a positive sign as the city exits from their rebuild phase and the rebuild stimulus on economic activity and spending wanes.