Technology revolution driving future of Bay land and property use

Society’s adoption of technology and its impact on ‘bricks and mortar’ real estate, coupled with Hawke’s Bay’s growing strength economically, are two hugely significant drivers for the future of land and property use in this region.

Frank Spencer, director of Logan Stone, a Hawke’s Bay based property specialist and valuation firm, believes that Hawke’s Bay has reached a point “within the new world framework that will see growth become steady with bursts of activity, in contrast to the cycles of the past 80 years, where there had been bursts of growth and long periods of stagnation.

“The strength of the national property market demonstrated through investment since 2013, has led to confidence in the growth of regional New Zealand, and Hawke’s Bay is a prime example,” Mr Spencer told over 120 property investors, financiers, rural business people and politicians at Logan Stone’s annual Perspective presentation.

“There’s been solid investment from offshore with investors, both national and international, looking for alternatives to Auckland, particularly in the sub $5million price band. Investors are keen for better cash returns, which Hawke’s Bay can provide, while others are looking to mitigate risk through geographic diversity within their portfolios.

“In addition, New Zealand is viewed internationally as an attractive sanctuary in an increasingly volatile world, and the Hawke’s Bay ‘brand’ is very well regarded, all of which has positive impact on those considering investing and doing business here,” Mr Spencer said.

During his presentation, Mr Spencer highlighted the growth in businesses affecting real estate demand, namely health, fitness and wellbeing, early child care and education. He also cited the increasing use of collaborative business spaces such as the new Tech Hub in Ahuriri that has telecommunications company NOW as anchor tenant plus a host of smaller technology-based businesses co-locating there.

“Businesses are needing less office space due to technology adoption that is changing the world of commerce,” Mr Spencer said. “Cafes are an alternative business venue and have replaced floor space formerly provided within offices.”

Mr Spencer noted that hospitality and non-retail operations were replacing traditional stores within all the region’s key CBDs. “Hospitality accounts for about a quarter of Havelock North and Taradale central premises, with further development in Havelock North to come.

“The more we accept and embrace technology, the more disruption is caused to real estate assets and the traditional way these are used. The technology revolution is definitely causing a stepwise change in the role of bricks and mortar real estate, not just in and the way we use, but also own them.”

ENDS

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