Soaring property prices and a scarcity of industrial sites in Auckland are having an impact on commercial developers, who need to cover land purchase and construction costs while offering new buildings at market rents.
Sunday, April 18th 2004, 7:49PM
by The Landlord
An Auckland Regional Council spokesman says no immediate strategy is in place to address the shortage of industrial land.
Peter Churchill of Barfoot & Thompson City Commercial says practically no land is left for development in the traditional industrial enclaves of Ellerslie and Penrose.
Prime industrial land in Wiri that sold for about $95 a square metre five years ago is now likely to be in the $140 range.
The story is similar in East Tamaki, where land available for around $90 a square metre five years ago is likely to fetch $160 a square metre now.
Much of the available land not in use in the Manukau City catchment is still in single-lot ownership and needs to be subdivided, with developers facing costs of roading and installing essential services.
