Building sales up to pre-GFC levels in 2013

Work is underway at 125 Fanshawe St, Auckland - future site of the new Fonterra headquarters.

The value of New Zealand investment buildings sold last year was back to pre-global financial crash levels.

Justin Kean, research and consultancy director at Jones Lang LaSalle in Auckland, said the commercial property market saw a big uplift in the volume of sales with more than $2 billion in transactions last year.

Office deals were the biggest contributor, making up 42 per cent of the deals and totalling more than $1.1 billion for the year.

That compared to $427 million for 2012, Kean said.

Some of the biggest commercial sales were in Auckland, with 1 Queen Street on the waterfront sold for $103 million, 73 Remuera Rd in Newmarket sold by Manson TCLM for $100 million and the $92.6 million sale of 125 Fanshawe Street for Fonterra's new headquarters, bought by Goodman Property Trust.

"The figures show that we are currently moving into a new stage in the market cycle," Kean said. "Capital continues to seek a home and is finding it in the office sector. With vacancy continuing to fall across most office stock purchasers believe that this is likely to manifest in upward rental pressure over the next 12-18 months."

Industrial buildings worth $386 million were sold, the largest since 2009, making up 25 per cent of the sales volume. Deals included Cardinal Logistics, VIP Plastic Packaging and Tegel Foods, Kean said.