Investor sentiment in the direction of the New Zealand market is bettering regardless of rising disparity between places, writes JLL’s Government Vice President, Accommodations and Hospitality, Nick Thompson.
The New Zealand resort market is presently displaying a bifurcation of demand and buying and selling efficiency throughout a lot of its main markets and areas. This disparity has been highlighted by the power of the Queenstown market, which is presently seeing surging worldwide demand and high-yielding leisure and enterprise travellers driving sturdy buying and selling ranges, and on the different finish of the markets such Auckland are coping with elevated new provide, and Wellington are adjusting to decreased authorities spending.
Worldwide customer arrivals proceed to rise and have reached 3.37 million for the yr ending Could 2025, representing a 5.2% improve on the earlier yr (YE Could 2024). Whereas Australia stays the dominant supply market, its restoration has been outpaced by the supply markets comparable to the USA and India, each of which have exceeded their pre-pandemic numbers.
Equally, we’re additionally witnessing a two-tiered market in the case of investor urge for food, with an rising disparity between places and asset class. Nevertheless, total investor sentiment is bettering, being pushed by a discount in rates of interest and the market extensively being seen as a clear, protected haven.
This constructive investor confidence was highlighted by our most up-to-date record-breaking transaction, with the InterContinental Auckland promoting for NZ$180 million to Singapore-based Resort Properties Restricted (HPL), in what was the most important single resort asset sale ever in New Zealand.
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