Westfield Newmarket, now rising in one of the largest retail expansions. Photo/Michael Craig
Westfield Newmarket, now rising in one of the largest retail expansions. Photo/Michael Craig
Auckland's record retail expansion will see the addition of 17 hectares of new shops, equivalent to about 23 rugby fields.
Colliers International has released a new market snapshot of the Auckland retail scene and it said 179,380sq m of retail was being developed throughout the city," the largest it hasbeen this cycle."
Westfield Newmarket, Precinct Properties' redevelopment of the Downtown Centre and the expansion of Sylvia Park at Mt Wellington are the largest projects now underway.
It might be exciting for shoppers, but there are also risks that come with this rapid growth.
"The development pipeline will alleviate long-term demand pressures but this could also see a potential rise in vacancy," Collier said.
Colliers noted the 18,000sq m Sylvia Park Galleria expansion, a further 18,000sq m of new shops at Commercial Bay by Precinct, 88,150sq m of new retail by Scentre Group at Newmarket and 3700sq m of redevelopment at Botany Town Centre.
Retail vacancies in the CBD are down and stand at just 2.6 per cent. Average Auckland retail rents range from $1250/sq m in the CBD to $4300/sq m. In regional Auckland centres, rents range from $650/sq m annually to $1850/sq m.
Colliers noted that in August, Precinct opened its first H&M flagship in the CBD and the rest of its centre is due to be completed in September 2019. Scentre has indicated completion of its $790m Newmarket project in the final quarter of next year.
