November Commercial Commentary

Recent data from CoreLogic highlights the pressure being felt in the commercial and industrial sectors. Year end sales to June indicate $5.32 billion which appears significant but when compared to the average of $9.88 billion for period from 2015 to 2023 with a high of around $15 billion in 2021. Locally, there have been 6 commercial/industrial property sales from January thru October with one of those being a private sale.

On a positive note, enquiries have definitely increased with a number of these being from businesses currently located outside of our area looking to expand current operations and Kerikeri is seen as an area for expected growth. While it is expected that there may not be any movement in the OCR on 27 November, the markets have anticipated this and hopefully we will continue to see a slow easing in the lending rates. This will assist in the housing market with an effect flowing through to the commercial market as new arrivals bring enterprise with them or locals feel encouraged to try something or expand their current operation.

So what does this mean for you?

• The area is attracting interest from external businesses, signalling potential for property value increases and economic activity in the region.

• With lending rates potentially easing, there may be a positive impact on the housing and commercial property markets. This could benefit investors and business owners in the area.

• If you're involved in property, business, or investments in the region, this data suggests a cautiously optimistic outlook. Opportunities might arise as lending conditions improve and interest in the region grows.

Feel free to phone me or drop in for a chat about anything commercial.

Wayne Scott 027 498 3312