Chris Dibble: How to beat the 2 things holding back NZ-Chinese development:
To give you a flavour of the quality of this event, leading commercial property expert Chris Dibble, Director of Research & Communications at Colliers International, will speak about the opportunities for NZ-Chinese property cooperation, and the factors holding it back.
You only have to glance at the media to see stories of the growing number of residential development and construction projects in New Zealand being undertaken by Chinese companies – such as shown in the New Zealand Herald recently.
Yet despite numerous high-profile residential projects starting to take their place within Auckland’s skyline – such as The Pacifica and Seascape - there has been very little commercial property development by NZ-Chinese developers here in recent years compared to residential work.
Chris Dibble will explain that there are two core reasons why this is the case.
1. Risk appetite
“Chinese residential developers can lower their potential overall investment risk through pre-sales activity,” says Dibble. “However, in contrast, commercial office projects typically require the whole development to be completed before a sale can take place. Therefore, there can be a much higher dollar value risk for offshore companies.
“New entrants may also not be as cognisant of local factors such as capacity constraints, which as we have seen in the market recently, have increased cost and risk if not set-out appropriately upfront. There could be opportunities in the future, though.”
2. Brand awareness
Dibble says that many Chinese developers understandably use their brand to generate interest and popularity with potential purchasers that know them from previous offshore activity.
“Recognition of the brand and familiarity helps purchasers to confidently make investment decisions, so it can be and easier entry strategy for Chinese developers new to the market.
“However, local commercial tenants in New Zealand that do not have exposure to offshore markets and alternative developer brands may not be familiar with the companies previous track record, adding unnecessary doubt in a challenging sector.”
To combat these issues, Dibble says that Chinese and NZ companies need to work together more to understand each other’s strengths and capabilities.
“New Zealand, from a global perspective, is a small location, and we require many offshore workers, skillsets, technology, labour knowledge, and capital. We will always have supply constraints. By working together, we can build greater understanding that will help unlock and transform future opportunities.
“It will be good for the Kiwi market to have stronger exposure to appreciate the breadth of Chinese companies’ capabilities, as they are going to be a big part of the industry’s future.”
At NZIBES, Dibble will also give an overview of the commercial property market in New Zealand:
• What’s hot
• What’s not
• Trends in the occupier market
…and much more!
Chris Dibble Bio:
Chris has overall responsibility for Research and Communications at Colliers International New Zealand. Chris has conducted commercial, industrial and residential property research for 13 years. He has provided strategic advice to numerous private and public sector clients and is a regular presenter and market commentator on current and future property trends