Investor sentiment in direction of the New Zealand market is bettering regardless of rising disparity between areas, writes JLL’s Government Vice President, Motels and Hospitality, Nick Thompson.
The New Zealand resort market is at the moment exhibiting a bifurcation of demand and buying and selling efficiency throughout lots of its main markets and areas. This disparity has been highlighted by the power of the Queenstown market, which is at the moment seeing surging worldwide demand and high-yielding leisure and enterprise travellers driving robust 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 lowered authorities spending.
Worldwide customer arrivals proceed to rise and have reached 3.37 million for the yr ending Might 2025, representing a 5.2% enhance on the earlier yr (YE Might 2024). Whereas Australia stays the dominant supply market, its restoration has been outpaced by the supply markets comparable to the US and India, each of which have exceeded their pre-pandemic numbers.
Equally, we’re additionally witnessing a two-tiered market relating to investor urge for food, with an rising disparity between areas 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, secure 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 biggest single resort asset sale ever in New Zealand.
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