NEW ZEALAND
CRE OVERVIEW
CAPITAL MARKETS
CHART 18: CAPITAL MARKET ASSET COMPOSITION
O ce Retail
Industrial
Others
Investment volumes have increased during the pandemic, peaking at approximately $5.7 billion in 2021, supported by low interest rates and strong liquidity, before declining sharply amid global monetary tightening and heightened economic uncertainty. Activity has since begun to recover, with around $6.9 billion recorded in 2025, highest since 2019, signalling a strong improvement in market conditions. Investor preferences have shifted materially over this period. Industrial assets have driven the recovery in investment volumes, increasing from 24% of national transaction volume in 2019 to 51% in 2025, with an average share of approximately 31% over the past seven years. Retail investment has also gained share, rising from 9% in 2019 to 16% in 2025, while office investment has declined, with its share falling from 33% in 2019 to 13% in 2025. Auckland remains the country’s primary capital markets destination, accounting for 46–65% of national investment activity over the past seven years. In 2025, the city recorded approximately $4.1 billion in total transactions. Within this, Auckland accounted for around 64% of national
retail investment and approximately 83% of industrial investment, reinforcing its role as the dominant investment market across these asset classes. Office investment has been more volatile, declining from around 69% of national office investment in 2019 to around 21% in 2025, a sign that investor appetite has yet to return to pre-pandemic levels. Nonetheless, major transactions continue to occur, including Quattro Group’s acquisition of four interconnected office buildings in the Auckland CBD (22, 24 and 26 Durham Street West and 19 Victoria Street West), alongside sustained interest in industrial assets, exemplified by Goodman Group’s sale of a 28% stake in the Highbrook Business Park portfolio, valued at approximately $2.1 billion, to Mercer. In contrast, Wellington and Christchurch have attracted more selective investment activity. Wellington recorded approximately $368 million of investment in 2025, or around 5% of national volume, with transaction activity remaining heavily skewed towards office assets and below pre-pandemic levels. Christchurch has seen a shift in investor focus, with earlier strength in retail investment during 2021–2022 giving way to stronger interest in industrial assets, which accounted for around 45% of total investment in 2025.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2019
2020
2021
2022
2023
2024
2025
CUSHMAN & WAKEFIELD
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