Capital value growth remains positive in Wellington following the 2016 earthquake. With a reduction of vacancy across most sectors, rental pressure will continue to increase and support capital appreciation in the region. Furthermore, elevated occupier demand, ongoing investor demand, and strong economic confidence provide a good foundation for further growth in 2018.
- Lack of suitable office space has alleviated some of the risks for owners and investors with regards to the previously expected vacancy rise in 2018 and 2019.
- The strip retail market is in a period of stasis for both rents and yield while existing vacancy in the Secondary market absorbs Prime market demand.
- Expected demand for industrial development has resulted in a rise of land values.