The Auckland commercial and industrial property market is very likely to continue thriving in 2016, which is indicated by the latest GDP figures for Auckland. It recorded 3.5% growth rate in the September 2015 year that is 1.1% higher than the rest of New Zealand and 1.4% higher than the city’s 10 year trend average.
The record levels of net migration boosting investment, retail spending and employment also reveal the continuity of strong growth of the Auckland economy as said by the chief economist Mr. Chris Parker. “In particular, Auckland’s economic performance is being underpinned by continuing employment growth,” said Mr. John Church, the national director, commercial for Bayleys. “There is a strong correlation between employment and the commercial property market as more jobs create increased demand for business premises.”
In addition to that, Mr. Church believed that there will be another buoyant year of the commercial and industrial property market in Auckland. “This is hardly surprising given it offers the best employment and education opportunities,” says Church. “Auckland’s rapidly growing population is a show of confidence in the city and will support continued economic growth. It will also increase the demands on housing and transport. Both Auckland Council and Government have set some ambitious targets for increasing Auckland’s housing supply which they are still a long way off achieving − so expect plenty of focus on this in 2016. This, in combination with high levels of non-residential construction, particularly in the infrastructure area, will add further impetus to the industrial property market. ”
The construction industry in Auckland is very likely to be benefited with the continuously high demand in property.