Location of the new global brand store at Westgate. Photo / New Zealand Retail Property Group
Location of the new global brand store at Westgate. Photo / New Zealand Retail Property Group
Which big-name global brand is coming to Westgate next month? If our credit data is so historical, how bad are things really? And what effect might rising development contributions in Hamilton have on housing there? All these questions are answered today in Property Insider.
Northwest big-box retail hub Westgate keepsdragging in the big names.
From massive data centres to New Zealand’s first Costco, the hub owned by Southland farmer Mark Gunton via his New Zealand Retail Property Group (NZRPG) continues to be a magnet, despite traffic woes which make it somewhat of a Bermuda Triangle of Auckland.
The latest to sign up for new space is Nike, moving in next month, having shut its store at Onehunga’s Dress Smart and reported last year to be ending online retailing in New Zealand.
Campbell Barbour, NZRPG general manager, said Nike had leased a 1130sq m store in the original Westgate, more towards Henderson, compared with the newer part of Westgate which is home to Costco - although NZRPG hates people saying the “new” and “old” Westgate.
“Brands like Nike take their store location decisions very seriously. The fact that businesses like theirs, Costco and so many others have committed to Westgate speaks for itself,” said Barbour.
A new Nike store will join other brands in this area of Westgate, where big-name retailers have shops. Photo / New Zealand Retail Property Group
The zone where Nike is about to open has become a hub for sports and lifestyle brands including Puma, Adidas, Under Armour, Converse, Asics, Timberland, New Balance, Sketchers and Platypus.
“Having another global leading brand join us alongside what is already a great lineup of outlet stores is awesome,” Barbour said.
Barbour said NZRPG had several big construction projects under way at Westgate and more big announcements were expected.
“Westgate continues to evolve as one of Auckland’s retail powerhouses.”
Credit data dated: How bad are things really?
How grim is the property market, really? Some say it is perhaps much worse than we realise because our data is historical and somewhat outdated, according to some by around three months.
Credit company Centrix said this month New Zealanders began the new year under more financial strain as mortgage and credit arrears climbed higher.
Mortgagee sales of residential properties remain at extremely low levels, despite increasing signs of stress.
The number of homeowners behind on their mortgage repayments rose to more than 21,800 in January, up 16 per cent year-on-year. The percentage of mortgages in arrears climbed to 1.47 per cent in January, up from 1.40 per cent in December.
In commercial property, talk is of increasingly tough times if you’re highly geared, hit by rising interest rates, sinking values, lack of buyers - the ultimate jam. If you believe the gloomy camp, the rate of bank defaults is now far higher than any data we’ve seen so far and it’s getting worse.
Residential defaults can be measured via mortgagee sales and those remain incredibly low, around 28 to 30 properties in any week.
Like Warren Buffett so famously says, only when the tide goes out do you learn who has been swimming naked.
Concerns at Hamilton fee hike
Rising Hamilton City Council development contributions have left developers and the Property Council expressing concerns.
Rising development contributions in Hamilton spark fears about effects on house prices.
“Aucklanders now can’t consider moving to Hamilton and building a new house there because these new DCs will prohibit that,” said one businessman.
However, those one-off charges for new developments also fund crucial infrastructure like water services, roads and transport.
The cost of funding those in the expanding city has risen.
The developer said if fees do rise 83 per cent as anticipated in one part of the city for a three-bedroom house, Hamilton will no longer be an affordable place to build.
“The golden triangle has become truly golden if you own a home but where do your kids afford to buy? DCs are not just covering what’s on that site but deferred maintenance and other issues across the city,” he complained.
This column was edited after publication.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
