4 Dec 2008

Credit crunch hits commercial property development

9:05 am on 4 December 2008

Commercial property is the latest to feel the grip of the global credit crunch, with close to a quarter of the developments in Auckland now on hold.

Of 212 new developments in the Auckland market, real estate consultancy, CB Richard Ellis, says 44% are still under construction, while 21% have been halted.

In Wellington, 13% of 49 potential new developments identified are on hold.

But industry representatives say tighter controls on finance by banks have helped keep the commercial property sector in check and overall the sector is in a solid position.