PRESS RELEASE | Hawke’s Bay commercial property continuing its rise
The rising Hawke’s Bay commercial property market is achieving “stunning” results says Pat Turley, director of valuers and property strategists Turley & Co.
With the release of the company’s PropertyMetrix report for the third quarter of 2016, he said there were some canny deals in the market, such as a property on Hastings’ Karamu Rd showing a 12 per cent rise in value annually over five years.
Principally leased to Caltex for 9 years from June 2015, it recently sold off-market for a ballpark price of $1.9million and a 6.25 per cent yield.
It was purchased in February 2011 for $1.04million - a 10 per cent yield with 4.3 years left on the lease.
“The price gain of almost $900,000 in five years is impressive,” he said.
“That’s 84 per cent or 12 per cent annually - not too shabby. It was a very good property play.”
The company’s PropertyMetrix report for the third quarter of 2016 shows a very strong finish to 2015 flowing into 2016, with it likely the $50million mark for quarterly commercial-industrial sales would be again reached this year.
Mr Turley said since 2007 there have been just five occasions when sale values reached the mark – four times between 2007-08 and the fifth at the end of 2015.
The PropertyMetrix report also shows the number of sales increasing. Since 2007 there have been six times when sales totaled more than 50 in a quarter – five times between 2007-2008 and the sixth at the end of 2015, a year when sales improved every quarter.
Built commercial-industrial property sales for 2015 were $163million, the highest level since the last peak in 2007 of $251million.
Commercial-industrial land sales spiked in the second quarter of 2015, the first time since 2007 land sales have exceeded $10million in one quarter.
“There appears a strong chance of the strengthening market continuing in 2016, with data lagging,” he said.
Turley & Co also released its Taradale & Havelock North Retail Market Review, showing just two retail vacancies for Havelock North ahead of the $25million Havelock North Village Exchange development due to open in December.
Taradale remained flat with five retail vacancies.