Retail vacancies decline in Auckland, rise in Wellington

(Source: Mānawa Bay/Facebook)

Vacancies across retail precincts declined in Auckland but rose in Wellington in the second half of last year.

Colliers data showed that retail precinct vacancies in Auckland slid to 3.8 per cent in December from 5.8 per cent in June. Suburban strip vacancy also fell to 6.6 per cent from 10.1 per cent. 

Manawa Bay and Ikea are under construction and expected to open late this year and next year, respectively. There have been no significant additions to the development pipeline in recent months.

Despite sales remaining subdued, Colliers said that sales evidence indicates that yields are stabilising amid growing confidence that interest rates have peaked.

Meanwhile, Wellington’s retail vacancies grew to 7.5 per cent in December from 5.75 per cent in June, amid vacancy increases in all precincts except Courtney Place and Cuba Street.

Colliers noted that the completion of the Willis Lane restaurant and entertainment complex, which hosts 16 tenants, was the most significant addition to supply in the second half of last year.

Moreover, local retailer AS Colour joined international brands Tommy Hilfiger and Calvin Klein in their opening at the former David Jones building during the first quarter of this year.

Colliers forecasts Wellington rents to remain steady over the first half while insurance costs are expected to increase.

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