Demand for industrial land is on the rise in Canterbury following the Government’s recent boost to tax deductions for investing in assets.
Sam Staite, Director of Industrial at Colliers Christchurch, says the significant depreciation and tax benefits associated with building new has sent a positive signal to businesses and property investors alike.
The Investment Boost will apply to most new assets that are depreciable for tax purposes and will also apply to commercial buildings. The assets must be new, or new to New Zealand.
“This is welcome news for those looking to invest in their business, as well as those building new commercial or industrial premises,” Staite says.
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“The surprise boost is already strengthening enquiry for industrial land, while some of our clients report that enquiries for the likes of new vehicles through to plant and equipment have also increased.
"It appears this new scheme has pushed a lot of parties who were previously ‘on the fence’ into making a decision to invest.”
Staite says there have been multiple industrial land sales transacted in recent weeks after sluggish activity across the board during the past 24 months.
Land values are holding firm with several sales in the Hornby area completed in the range of $425 to $450 per square metre plus several significant sales in the Rolleston industrial area.
“There’s a great window for developers and owner-occupier businesses at the moment. Although limited, there are still some titled, freehold land options available, and from some of the pricing we’ve seen, build costs are currently extremely competitive.”
Staite expects this climate will fuel interest in four land parcels he is marketing with colleague Harry Peeters at Rolleston in the booming Selwyn District of central Canterbury.
The titles range in size from 3,900sq m to 3.3ha and are all in the 180ha sold-out Izone Southern Business Park, one of the most popular industrial locations in the city.
Two of the freehold sites are located at 48 and 52 Detroit Drive. Both well-proportioned parcels span approximately 3,900sq m, with 49m street frontages and a depth of 78m.
At approximately 6,856sq m, 74 Izone Drive is a regular-shaped site, with a large street frontage of 75m that will enable multiple access points to the site and a site depth between 88m to 94m.
Measuring 3.27ha, 48 Westland Place is one of the largest industrially zoned parcels on offer currently in the Canterbury region.
A regular-shaped site, it is next to Westland Milk Products and PGG Wrightson Seeds and well positioned for any large-scale business with import/export ties given its proximity to the inland ports.
Peeters says a standout feature of Izone is its no development contributions policy that can potentially save developers tens of thousands of dollars, and in some instances more.
Rolleston is one of the fastest-growing regions in New Zealand. Its population grew by 9.6 per cent last year compared with New Zealand’s population, which grew 1.7 per cent during the same period.
- Supplied by Colliers
