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JLL said there had been a marked increase in interest from offshore investors. Photo: 123RF
Green shoots are appearing in the retail sector as Covid-19 restrictions ease and international visitors return.
Property management and investment firm JLL said while retailers faced immediate economic headwinds, the medium-term outlook provided some positives.
JLL local head of research Gavin Read said chief among the pressures were labour shortages, and he hoped the government would further ease immigration settings.
But one positive was overseas investors eyeing up local firms, particularly after the border reopening, he said.
“We have seen a marked increase in not only conversations but having meetings with offshore investors locally and finding out about where is New Zealand at.
“That will be a continuation of what it we saw pre-pandemic.”
Read expected more offshore capital looking for “a home in New Zealand” next year.
While overseas interest had grown he had not seen many transactions so far this year.
Elsewhere in the New Zealand property sector, mixed-use developments were on the rise.
“Notable developments include Seascape Auckland, Britomart’s Barrington, Sofrana Buildings on Customs Street East and Galway Street, and 110 Carlton Gore Road by Manson,” Read said.
He said the central business district retail sector’s recovery would also be fuelled by more workers returning to the office more regularly.
“We see a real synergy between these two sectors, and retail developers and investors will be paying close attention to the ‘flight to quality’ that now defines New Zealand’s prime office market.”