Property Professional - New Rules Driving Retail Success

SPRING 2016 | $12.99
CELEBRATING
EXCELLENCE
IN PROPERTY
COMMERCIAL RETAIL
Winners and losers
NEW RULES DRIVING RETAIL SUCCESS
HOUSE PRICES DEFYING GRAVITY
Effects of meth contamination on houses
PINZ 2016 ANNUAL CONFERENCE
Property award winners

Greg Allen – Partner P. +64 9 977 5164 M. +64 21 534 464 gregory.allen@simpsongrierson.com
Hugh Lindo – Partner P. +64 3 968 4010 M. +64 27 711 7171 hugh.lindo@simpsongrierson.com
Greg Towers – Partner P. +64 9 977 5051 M. +64 21 963 653 greg.towers@simpsongrierson.com
Mike Scannell – Partner P. +64 4 924 3416 M. +64 21 437 644 mike.scannell@simpsongrierson.com
Michael Wood – Partner P. +64 9 977 5329 M. +64 21 772 974 michael.wood@simpsongrierson.com
Phillip Merfield – Consultant P. +64 9 977 5096 M. +64 21 935 407 phillip.merfield@simpsongrierson.com
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FROM THE CEO
Our industry has certainly
been receiving its fair share of
attention in recent months.
Escalating house prices in Auckland, and
now across the country. Issues of supply,
issues of affordability, interest rates, loan to
value ratios, rental warrants of fitness, the
list goes on and on.
With all that media, the frantic pace of
change, and a focus on ‘what’s going wrong’,
it has been too easy to forget about the
many positives that the property industry
has to celebrate in what is a vibrant and
growing sector.
New Zealanders take real pride in the
look and feel of their communities, and
I would argue that in many areas we are
actually getting things right.
There’s still much more to be done, and
I think we all accept that, but there is so
much going on that some of the wins are
being lost in the daily rush to deal with the
next big issue or ‘crisis’.
As the Chief Executive of the Property
Institute I come across all manner of
property professionals, and the one
constant throughout our entire industry is
that we are all striving to build better towns,
cities and communities.
We may not always agree on the way to
get there, but it is clear to me that there is a
shared end goal.
I think a good example of this is the
recent discussion (and debate) centred on
Auckland’s Unitary Plan.
The revisions now being suggested are
a massive step forward, and come after
a significant campaign by the Property
Institute and others to effect change.
I’m pleased the decision-makers
now appear to agree that city needs to
grow up and out as quickly as possible –
while still protecting those things which
make Auckland the world’s third most
liveable city.
The changes include the proposed
removal of the requirement for minimum
apartment sizes allowing for the
construction of smaller apartments,
recommendations to delete building
demolition controls for pre-1944 houses,
and recommendations to delete the
Schedule of sites of value to Mana Whenua.
What these amendments show is that
the officials and politicians do actually
listen to our industry and the many
dedicated professionals who’ve made
property their career.
And so it is that in this edition of
Property Professional we unashamedly
celebrate some of our industry
success stories.
The Property Institute did this at a
black tie awards ceremony held alongside
our annual conference in Auckland over
two days in June. It was a first for us and I
consider it a tremendous success. We will
definitely be doing more of this.
Later in this edition you can check
out the full list of recipients, but I want to
focus on the Young Professional of the Year
Award. This was hotly contested by a great
bunch of high achieving young people from
the property industry.
It was won by Natasha Sarkar, who
also received recognition from the Royal
Institute of Chartered Surveyors this year.
This young professional is doing our
industry proud, and I look forward to
following her contribution in the years
to come.
I believe the Property Institute is
all about excellence, and I hope these
awards will complement the work we do
in education, maintaining standards, and
improving the skills of those professionals
working in our industry
Ashley Church, Chief Executive
Property Institute of NZ
e: ashley@property.org.nz
m: 027 486 1770
CELEBRATING
EXCELLENCE
IN PROPERTY
ASHLEY CHURCH
PROPERTY PROFESSIONAL | SPRING 2016 1

SPRING 2016 | $12.99
CELEBRATING
EXCELLENCE
IN PROPERTY
COMMERCIAL RETAIL
Winners and losers
HOUSE PRICES DEFYING GRAVITY
Effects of meth contamination on houses
PINZ 2016 ANNUAL CONFERENCE
property award winners
SPRING 2016
Contact details
Ashley Church, CEO
Property Institute of New Zealand
PO Box 5304
Lambton Quay
Wellington 6145
0800 698 258
ashley@property.org.nz
Editor
Helen Greatrex
helen@property.org.nz
Print production and
advertising enquiries
The Printroom
(04) 473 1211
glenn@theprintroom.co.nz
Publisher
Property Institute of New Zealand.
Property Professional is published
quarterly and a copy goes to every
New Zealand based member of the
Property Institute. The articles are
not peer reviewed and represent the
unaudited views of the relevant authors.
If you have any questions about the
content of an article please contact the
Editor or the relevant author.
ISSN 2253 5179 (Print)
ISSN 2253 5195 (Online)
CONTENTS
SPRING 2016
FROM THE CEO
01 Ashley Church
COVER ARTICLE
04 Commercial retail –
winners and losers
Diana Clement
FEATURE
ARTICLES
10 New rules driving
retail success
Chris Wilkinson
14 Understanding the new
rules of retail
Mark Gascoigne
18 The ‘P’ souper of the 21st
century – effects on rental
properties, insurance and
selling a house
Vaughan Wilson
22 Conference to change
perceptions of engineered
timber construction delivers
a worrying insight
Jane Arnott
27 Focus on property advisors
Ben Gill
28 Defying gravity – easy
money and house prices
Michael Rehm
10
18
38
2 PROPERTY PROFESSIONAL | SPRING 2016

PROFILE
34 Natasha Sarkar
CONFERENCE
36 Awards wrap up
38 Riding the Wave – photos from
the 2016 conference
39 Conference review
YOUNG PEOPLE
IN PROPERTY
40 Update on Kate Fluker
LEGAL AND
TECHNICAL
42 Changing times – can
I enforce a deposit of
more than 10%?
Mark Allen and Lucy Westenra
45 Update on changes to
building measurement in
New Zealand
John Darroch
UPCOMING
EVENTS
48 PINZ branch events
50 Property Politics Auckland keynote
14
04
22
28

A future for retail?
If there’s one certainty in the future of retail
it’s that there is no certainty. Ask owners
of failing small suburban stores if there’s a
future for New Zealand retail and many say
‘no’. Analysts, large property investors and
big international stores think otherwise.
For 20 years now the internet has been
hailed as the death knell of bricks and
mortar retail. The reality might well be
that retail is adapting in the way cinemas
did to the video threat. It’s true that there
is big change coming in retail, but the
sector needs a paradigm shift in thinking.
Retailers, landlords and related businesses
who don’t innovate face a blood bath.
It’s a stark message, but digital is
driving out stores selling products that can
be bought online such as toys, books and
many others. On the other hand, the star
is rising for innovative retail offerings that
target customers on all fronts.
First Retail Group’s Lorraine Nicholson
cites failed electronics retailer Dick Smith
as the most obvious recent casualty of
the rapidly changing landscape. Other
well-documented losers include Video Ezy,
Spazio Casa and the Valley Girl chain. There
are winners as well, which brings hope to
those whose fortunes lie in the retail sector.
The ‘aspirational’ Barkers men’s clothing
chain is a great example of a winner,
says Nicholson.
COMMERCIAL
RETAILWINNERS
AND LOSERS
DIANA CLEMENT
Digital disruption is hitting retail right through the heart. Retailers and commercial landlords who
innovate do have a future. This article looks at the paradigm shift needed in thinking to survive the
rout and prosper.
Carter Group’s The Crossing in Christchurch is one
of the key new buildings in an interconnecting web
of retail malls, laneways and arcades4 PROPERTY PROFESSIONAL | SPRING 2016

Consumer behaviour change
Shopping behaviour is changing. Digital
disruption is everywhere and the
competition will only become more intense.
Some of the trends predicted by retail
analysts include:
Omni channel shopping
‘Shops will need to provide multiple
channels,’ says Nicholson, ‘blurring
the lines between in-store and online.
Digital visibility bridges the online/offline
experience. We know now that close to
80% of in-store sales are web influenced.’
Shoppers want instant purchasing
Customers don’t want to wait until
Saturday. Increasingly they point
and click on sites such as Trade Me,
Diana Clement is a freelance
journalist who writes about
property, personal finance and
related topics. She was the overall
winner of the New Zealand
Property Journalism Awards in
2008 and 2009.
e: diana@wordfusion.com
For 20 years now the internet has been hailed
as the death knell of bricks and mortar retail.
The reality might well be that retail is adapting
in the way cinemas did to the video threat.
aliexpress.com, bookdepository.com or
amazon.com. Or they may click today at
thewarehouse.co.nz and other websites
for later collection at their local store at
their convenience.
Experience over product
No longer will the catch cry of shop
floor staff be: ‘It’ll be on the shelves
if we have it.’ According to Nicholson,
retailers will need to go going beyond
traditional service models to develop
depth of relationship. A retailer selling
coffee machines, for example, would
not only help the customer choose one,
but provide in-store barista training
workshops. They may curate a series of
products that they know, because of data
analytics, that the individual customer
would buy. Or they could band together
in business collectives in the way Xero
does with VendHQ, WorkflowMax and
many other third party service providers.
Customisation
Why buy a one-size-fits-all product when
you can have yours customised? The
mi adidas app, for example, allows you
to build your own custom shoes. The
2015 winner of Microsoft’s Imagination
Cup was an app called eFitFashion,
which allows customers to enter
their measurements, and the design
is sent direct to a manufacturer for
individual fulfilment. Such concepts will
make traditional fashion retail quake
in its boots.
Aspiration
‘Winners in retail will need to develop
a brand that people love, want to be a
part of, and advocate for,’ says Nicholson.
New Zealand examples include Working
Style, Superette, Farro Fresh and
Moore Wilson’s.
Big retail – bright future
You’d think that the retail sector would be
all doom and gloom with the Amazons of
the world stealing their business. Not so.
Malls in New Zealand are being redeveloped
left right and centre and the big retail
brands are moving in.
Australian department store David Jones
has dipped its toe into the New Zealand
market, opening its first store in the old
Kirkcaldie & Stains building in Wellington. It
is widely expected to follow suit with more
stores in other centres, including possibly
Auckland’s redeveloped Downtown Mall, 277
in Newmarket. At a stretch it could take over
Smith & Caughey’s flagship store in Queen

Street, leaving the Caughey family to run the
more profitable property side of its empire.
Investors such as Auckland’s Precinct
Properties and Scentre Group, and
Christchurch’s Carter Group, are pouring
millions into new developments, predicting
that the customers will follow.
The invasion of the foreign brands
excites Christopher Beasleigh, National
Director Retail Sales, at Jones Lang LaSalle
(JLL). Malls that can secure these names
turn themselves into a destination. That’s
what the likes of Sylvia Park in Auckland,
which has signed Swedish clothing retailer
H&M and Zara from Spain, have done.
Carter Group’s The Crossing development
in Christchurch is also expected to do this
when Topshop opens.
With winners, there will always be
losers in grabbing a finite number of
dollars from shoppers’ pockets. If new
malls and department stores snatch those
discretionary dollars, older malls and local
shopping centres suffer. ‘The smaller malls,
such as those in Auckland’s Glenfield and
Wellington’s Johnsonville, need to evolve or
reinvent themselves and offer something
different to customers,’ says Beasleigh.
That could be more food and beverage or
entertainment such as the Jump Trampoline
parks, which have taken off in Hamilton
and Auckland.
Food, food and more food
Whether it is mega malls or a little row of
shops in Otorohanga, Beasleigh says the
COMMERCIAL RETAIL – WINNERS AND LOSERS
With winners, there
will always be losers in
grabbing a finite number
of dollars from shoppers’
pockets. If new malls and
department stores snatch
those discretionary dollars,
older malls and local
shopping centres suffer.

Whether it is mega malls or a little row of shops in
Otorohanga, the future involves a move to more food
and beverage retailing and entertainment as time poor
Kiwis buy their widgets online, but eat out more.
future involves a move to more food and
beverage retailing and entertainment as
time poor Kiwis buy their widgets online,
but eat out more.
This trend is revitalising erstwhile
dead centres. Beasleigh cites Takapuna on
Auckland’s North Shore. Takapuna was as
dead as a dodo at night even five years ago,
but is now a thriving destination with brand
new laneways.
‘In Takapuna 90% of (local’s) money was
spent outside Takapuna,’ says Beasleigh.
‘Then (trendy eatery) Madam Woo opened
and you couldn’t get a table. It shows that
you need to do retail differently.’ He has
seen the transformation around the country.
Where a row of 50 shops sported five food
offerings in the past, there are now 10 or 15.
Doing it tough in suburbia
Just like Christchurch’s New Brighton (see
box on page 8), the traditional row of shops
is doing it tough. ‘The 21st century is scary
for landlords of these shops,’ Beasleigh
says. But like their retail clients, they need
to think creatively.
In towns and outlying suburbs of the
cities, he says, landlords aren’t always
willing to move with the times. Too often
they expect business as usual to come to
them at the same yield they have always
received, ignoring the disruption going on
around them as Rome burns.
‘Landlords who struggle to get the yield
they expect or to even tenant the property
might need to consider, for example,
pre-installing these features that attract
tenants or see potential tenants head
for newer property at the edge of town,’
says Beasleigh.
Or if the new face of retailing in
the town involves foreign tourists, then
cater to them. Beasleigh cites a new cafe
he visited in Te Anau recently that was
humming, thanks to taking advantage of the
new cycleway.
Thinking outside the box
The challenge is to think outside the box.
That means keeping up to date with the
latest international trends, being creative,
extracting value from sales data, continually
experimenting, and being aware that
unexpected competition could come from
any direction.
Christchurch’s The Terrace complex is
one of nine buildings in Gough’s $100
million plus complex of offices, shops,
restaurants and bars
While a shiny new centre rises in Christchurch, surburban
malls such as New Brighton’s Arcade Mall suffer

Such out of the box thinking could,
Beasleigh believes, be a bakery with
internet ordering and contracts to supply
schools, cafes and restaurants as well as
opening in the evening offering desserts.
While shutting up shop at 2pm may have
worked in the past, the omni retailing
bakery needs to look for new channels
to market.
Or it can be creative, as demonstrated
by Development Christchurch Limited, which
ran a small-scale but ingenious exercise at
the end of July where it spent a mere $60
on Pokémon Go lures for the New Brighton
Seaside Market and promoted them on
social media. ‘On the back of that initiative
we drove 500 to 1,000 extra people to the
market on top of the regular customers,’
says Chief Executive, Rob Hall. He admits
the exercise was gimmicky, but it shows how
technology can be used to drive customer
behaviour and achieve a result.
‘In many cases, such as Takapuna and
nearby Devonport Wharf, landlords are
finding that otherwise dead spaces can
take on new life with an inspiring plan,’
says Beasleigh. The Devonport Wharf, which
has been pretty much dead for 20 years,
is being redeveloped with a new upmarket
restaurant to revitalise the area and take
advantage of the thousands of people who
pass through every day. Suburban malls
could, for example, take tips from overseas
and entice customers in on slow nights with
food trucks in the carpark, or bring your
own beanbag-type free movies.
Other experiments tried worldwide,
adds Nicholson, include measures such as
providing short stay car parking for click
and collect, which she predicts will be as
important as parent and baby parks
CHRISTCHURCH
RETAIL SNAPSHOT
‘You can’t let a good crisis go to waste.’ Rob Hall, Chief Executive
of Development Christchurch Limited, doesn’t claim authorship
of that statement, but he believes it sums up the paradigm shift
happening in Christchurch’s retail sector.
The central city was destroyed in the February 2011 earthquake
forcing retail into the surburban malls. As a shiny new centre rises
from the ashes, customers will be drawn back into to the multiple
laneways and modern malls sporting all the latest features.
‘What will happen in the smaller centres is where thought
needs to go,’ says Hall. He cites New Brighton, which used
to be a thriving hub thanks to being the only centre in the
country a few decades back to have Saturday trading. Today it
is one-quarter boarded up and the remainder is a mix of mostly
unremarkable shops.
New Brighton’s current retail malaise isn’t just the fault of the
earthquakes. The centre suffers from a multiple landlord situation
and the lack of progressive thinking of many small retail centres.
The challenge, says Hall, will be for similar centres to reinvent
themselves and specialise in the way that some centres become
destinations for antiques and second-hand books.
The issue for New Brighton, and many like it, is that it is too
big for the retailing of the future. What, however, happens to the
individually-owned shops that are no longer needed? There are
only so many $2 shops that any one community can support. Will
the unneeded stock sit empty for decades, degrading the look of
the area, or will the buildings find a new use such as residential?
JLL believes the redevelopment of
Devonport’s tired wharf in Auckland
will revitalise the area
COMMERCIAL RETAIL – WINNERS AND LOSERS

VALUER’S EDUCATION & INTEGRITY FOUNDATION
Te Tumu Ngākau Tapatahi Mātauranga mo te hunga Kaiwāriu
About the
Foundation
Established to promote
research into issues
of valuation and land
economy, the original
trustees are Phil Curnow
(Chairman), Tony
Culav, Terry Naylor,
Peter Loveridge and
Gwendoline Callaghan.
In June 2016, the
Foundation achieved
charitable status and
the trustees now meet
on a regular basis.
Applications for research
funding now open
▪ Funding for research, scholarships and/
or awards on topical valuation issues,
with a public benefit is now available.
▪ We are seeking relevant research
topics to promote the acquisition and
promotion of knowledge on property,
and property rights.
If you are interested in undertaking
any research, or have suggestions for
relevant topics that could be included
in our inaugural funding round, please
contact terry@fordbaker.co.nz

NEW RULES DRIVING
RETAIL SUCCESS
Retail focus
The influx of international brands and
intense media interest in shopping
trends has thrown a great deal of
focus on retailing this year. It’s not just
New Zealand’s big cities that are seeing
fresh retail opportunities, but our
suburban centres and provincial towns
too. Confidence is returning as businesses
and property owners adopt new models
that better reflect shoppers’ needs and
expectations.
From a sector that has seemed under
siege by changes in consumer behaviour, a
squeeze on discretionary spending and the
apparent menace of e-commerce, shopping
is finally back in vogue – but the rules
have changed.
Understanding and responding to these
dynamics has helped innovative retail
landlords reap rewards as store offers,
formats and experience transform for the
new economy that is increasingly blending
both physical and digital channels.
Understanding the key drivers
Before sharing some of the dynamics
behind success in retail property it is
important to understand key trends driving
shoppers in today’s new economy:
Purposeful shopping
Up to 80% of all purchases are now
digitally influenced. This prioritises
retailers and destinations, such as
shopping centres, that have good online
visibility and usability.
CHRIS WILKINSON
Adaptation helps retailers and property owners meet changing consumer needs and expectations.
It’s not just New Zealand’s
big cities that are seeing
fresh retail opportunities,
but our suburban centres
and provincial towns too.
Wall Street Mall,
Dunedin

Convenience is king
Consumers are increasingly time poor.
They need assurance that products are
available, and stores are easy to reach
and open when they need them. This
places emphasis on customer centricity,
ease of access, and features such as
click and collect in our busiest parts of
New Zealand.
Food and beverage is the new anchor
An increasing percentage of consumers’
discretionary spend is going to cafes,
restaurants, grocery and fast food outlets.
Having a strong food and beverage offer
within towns, suburban centres or malls
is fundamental to ensuring the success
of retailers.
Suburban shopping
Shopping close to home is seeing a
renaissance as consumers re-engage with
their community and recognise social
value in supporting nearby businesses.
‘Localisation’ is a key trend across
Australasia, which is helping lift the spirits
and fortunes of suburban traders – and
their landlords.
In New Zealand, the recent lowering of
alcohol limits for drivers has spurred an
increase in quality neighbourhood drinking
and dining establishments. This has been a
catalyst in filling empty shops and, in turn,
reconnecting residents with their nearby
retail offer.
For property owners in suburban areas
there is a window of opportunity to leverage
this increased engagement by developing
retail environments that reflect the
community, support gentrification and fit
the needs of the businesses that best suit
these areas.
Characterful façade improvements,
collaborative efforts with other landlords
and a close working relationship with the
local council’s urban designers can rapidly
transform areas, creating destinations
of choice for contemporary consumers –
and tenants.
Shopping malls
While a great deal of attention has been
focused on mega-mall Sylvia Park securing
H&M and Zara to create a distinctly
competitive edge, most New Zealand
shopping centres have a similar retail
offer which is increasingly challenging
performance and goodwill.
Consumers, tiring of homogenous stores,
are prompting centre owners to prioritise
the acquisition and encouragement of
new brands, concepts and store formats.
Delivering an offer that is unique, exciting
Chris Wilkinson is the Managing
Director of First Retail Group Ltd,
a New Zealand based specialist
advisory that works with
major retailers, local and central
government and property owners
across Australasia and the UK.
e: chris@firstretailgroup.com
Consumers, tiring of homogenous stores, are
prompting centre owners to prioritise the
acquisition and encouragement of new brands,
concepts and store formats.
Gore shopping area
and aspirational is driving success
internationally through retailer succession
and development programmes, chains that
‘localise’ their stores and ranges – and
shopping environments where customers
can escape and enjoy retail ‘utopia’.
There are a number of ambitious
projects currently underway that will
transform existing centres through
luxurious environments, high levels of
customer experience and unique retail
mixes. These investments have been

spurred by increased competition in the
shopping centre space, with new owners
entering the marketplace.
Malls have been quick to recognise
the potential vulnerability to their assets
– and the tenants’ future – as consumers
increasingly blend shopping in-store with
online purchases. With digital strategy
and technology at the heart of future
developments, owners are rapidly working
to ensure their centres and stores are
prioritised in customers’ minds.
Utilising Wi-Fi, apps, digital signage,
social media and other methods to reach
and engage shoppers through an integrated
approach, some centres are transforming
connection and engagement.
In Dunedin’s Wall Street Mall, a
successful marketing strategy has leveraged
social media to effectively engage the city’s
inner city and student population, driving
traffic and trade for the centre’s stores
and cafes.
Customer advocacy is a big factor
that helps malls become aspirational
destinations. Encouraging consumers to
talk about, share and endorse a centre is
not only cheap marketing, it is also having
a transformational effect on visitation for
target demographics, as Wall Street’s owners
have discovered.
Encouraging frequency of visit and
sales uplift is a key goal as centres seek
to grow performance and relevance in an
increasingly competitive environment.
Some have found a solution in what has
in the past been their greatest commercial
challenge – consumers’ digital connectivity.
Innovative malls like Coastlands’
Shoppingtown on the Kapiti Coast have
leveraged technology to reach customers,
then reward them for visitation and spend.
As part of a comprehensive strategy that
integrated all aspects of the mall’s digital
presence and reach, Coastlands developed
a relationship with its customers and the
wider community on levels unachievable
through traditional marketing formats.
This depth of connection differentiated
the mall’s relationship and has helped
increase goodwill.
Free Wi-Fi has been a core element to
that centre’s digital success. Enabling regular
customers, visitors and tourists to access the
web has helped lengthen customers’ stay
– boosting performance for food operators
and retailers. Wi-Fi functionality has also
helped better understand customers’ visits,
journeys and preferences within the centre,
enabling managers and marketers to get a
clear picture on trends.
Provincial towns
Challenges in rural economies have hit
provincial towns hard, which has been
reflected in the retail sector. With less
spending, and a greater focus on thrift, store
vacancies have increased and commercial
confidence has suffered.
New Zealand’s two largest cities – Auckland and
Wellington – have been buoyed by international
retailers scrambling for presence.
Old Bank Shopping Arcade,
Wellington

One town that has bucked the trend is
Gore. Early action by a mayor and council
that recognised the economic and social
value of its township has seen a major
uplift in the town’s fortunes and confidence.
When a well-known retailer closed its doors
and couriers began buying larger vans to
cope with online purchases, the council
knew it was time for action.
External support was brought in to
develop a strategy and an action plan,
then retailers and property owners came
together to turn ideas into action. The
GoRetail Group, and it’s Love Gore – Shop
Local programme, have become an icon now
in resilience for provincial towns with other
areas keen to emulate Gore’s success.
Core to the success of the programme
has been an integrated strategy that brings
together all elements that drive retail
performance, objectivity and expertise,
as well as a determined approach from
the council and stakeholders that has
ensured endurance.
Like shopping centres, free Wi-Fi has
benefited towns like Gore, encouraging
people to stop and spend time and money
in the stores, cafes and restaurants. Data
from the system is also being used to
determine visitor frequency and trends.
Gore is seeing new stores opening,
businesses collectively developing online
shopping and a confidence few other towns
can match.
Main centres
New Zealand’s two largest cities – Auckland
and Wellington – have been buoyed by
international retailers scrambling for
presence. First it was Top Shop, then David
Jones, who have helped put retail back on
radar – and reconnect consumers with the
shopping experience. These stores have
spurred a flurry of leasing activity near to
their new locations as other chains have
been eager to benefit from the draw of
these traffic drivers.
At a higher scale still luxury retailers
have been busy – assisted by New Zealand’s
increasingly international residency and
visitation. Asian customers, in particular,
have propelled demand for icon brands,
many of which have located in Auckland’s
Lower Queen Street area. Tiffany’s recently
announced store in Britomart further
strengthens this area as an aspirational
destination for premium shoppers.
For many retailers their presence in
Auckland’s emerging luxury quarter is
often seen as global brand advertisements
and market positioning. Visibility amongst
a cosmopolitan audience of residents,
domestic visitors and international tourists
helps propel brands and drives downstream
sales. This has seen recent leasings with
square metre rates amongst the highest
in Australasia.
For mass-market retailers the equation
is very different. Stores need to be
productive and profitable – driven by tightly
managed rent-to-turnover ratios – and that
often make the difference between profit
and loss.
High occupation costs have helped
propel continued growth of vertical
chains – at the expense of independent
stores. Increasingly, only businesses with
hefty margins afforded by owning the
supply chain can win in expensive rental
environments.
Chains come with their own challenges
for central cities. Cookie-cutter stores serve
up a sameness that consumers can find
in any mall or town across Australasia.
This is a key reason that shoppers have
been disconnecting from the store
experience as they seek differentiation from
online channels.
In progressive cities like Wellington
guardianship programmes such as Our CBD
are charged with ensuring independent and
artisan traders can grow, flourish and pitch
it against the chains, while also making sure
all inner city businesses have a successful
environment to trade in.
Wellington City Council has been actively
developing laneways and encouraging the
adventurous use of buildings that create
spaces for emerging and entrepreneurial
new ideas. This has seen the growth in
‘provenance’ businesses like Fix & Fogg,
Three Barrel Soda and others whose brands
are now represented across New Zealand.
These laneways have been so successful
that well-known names are clamouring
to be part of the action. Al Brown’s Best
Ugly Bagel has just opened in Swan Lane
off Cuba Street in Wellington’s distinctly
bohemian quarter.
Summary
Retail is in its most dynamic state ever.
Opportunities continue to unfold for many,
while businesses that don’t interpret
change will fall rapidly by the wayside.
To succeed, businesses, towns, cities
and major property owners need to have
an agile retail strategy that guides key
decisions, interprets opportunity, drives
performance and manages risk. These are
the elements prospective tenants want –
and their funders are increasingly looking
for certainty around performance before
committing to investment and leases.
Retailing will continue to evolve, but
the road ahead is becoming clearer as
brick and mortar stores find their rightful
place in consumer lifestyles and the new
digital landscape
Retail is in its most dynamic state ever. Opportunities continue to unfold for
many, while businesses that don’t interpret change will fall rapidly by the wayside.

UNDERSTANDING
THE NEW RULES OF RETAIL
MARK GASCOIGNE
What is up with retail? You
can be excused if you are
confused by the way retail has
changed recently.
Mixed and changing
retail climate
On the one hand we have retailers
bemoaning the negative effects that online
shopping has had on their ‘bricks and
mortar’ businesses. On the other, dominant
Hayama Sushi at Auckland Airport
online retailers like Amazon are opening
stores as fast as they can.
Previous retail strongholds such as
Ponsonby and Newmarket have closed
stores and there are ‘for lease’ signs
everywhere. At the same time, overseas
luxury retail chains are opening stores in
the Auckland CBD.
Many iconic New Zealand retail brands
have gone to the wall in recent months, yet
it’s very difficult to get a booking at a top
restaurant. What’s going on?
It seems that in the very recent past
a property owner could designate a
space on the ground floor of a building
for ‘retail’, lease it to retailer who would
fill it with stock, and the public would
flock in and everyone was happy. Now it’s
more complicated.
I spend much of my professional life
guiding retailers from one-off boutiques,
hotels and cafes, to large chains and
shopping centres, through the current
minefield of how to make money in this
retail market. But it is still hard to explain in
just a few words how totally different it is.
The way retail works is constantly changing
and now at an astonishing rate.

Mark Gascoigne is Principal
Architect at Studio Gascoigne
based in Auckland.
e: mark@studiogascoigne.com
New trends
Here are a few thoughts to help you get
your heads around the changes:
It’s not just about the product,
building or service
Once most retail journeys began in a shop,
but now even the most basic of purchases
begin online. As I write this I am flying
into Bangkok and one of the first things
I’ll do when I get there is to google where
to get the best coffee. Not that there’s a
shortage of coffee anywhere on the planet,
but customers want to manage the process
of discovery rather than have the retailer
dictate what they should buy. And no longer
is having a store in a high traffic area a
guarantee of success – e-commerce has
taught us that. It’s now up to the store or
shopping centre owner to go and ‘get’ the
customers by whatever means necessary,
rather than simply expecting them to arrive
on their doorstep.
It is about being connected
Uber taught us that putting the customer in
charge of the service on their phones was
a recipe for success. Customers now have
access to a wealth of information about
the best places to shop and the best goods
to buy. Well-informed customers arrive
at stores knowing what they want, rather
than retailers dictating what they should
have and when. That means that your shop
needs to be found easily, online and off,
and have a consistent brand experience
at both.
It’s about relationships
In the face of so much product and so
many places to buy it, both online and
offline, it is up to retailers to build trusting
relationships with their customers to
turn them into advocates for their brand.
No longer can retailers simply send out
information by mail or email and expect
a sales result. They need to listen to their
customers and act on the feedback.
Communities
One of the greatest assets retailers have
against online shopping is that they
can create local communities. Stores
and shopping centres that support
communities and offer a more personal
place to shop will thrive against anonymous
retailers. But don’t think for a minute that
e-commerce retailers don’t also have online
communities driven by social media and
other tools that allow them to get up close
and personal with the customers – and do
it 24/7.
In Asia, many new apartment
developments are clustered around
shopping centres, food and entertainment
Comvita store in Popcorn Mall, Hong Kong

precincts and community facilities. There
is significant opportunity for this in
New Zealand as Auckland, in particular,
grows. But this will only be successful if
these retail hubs can break the mould of the
insular suburban retail malls of the sixties.
Experiences matter
One of the most profound changes in
consumer behaviour since the sixties has
been for consumers to spend more on
experiences and less on goods. The obvious
implication for retailers is that for a shop
or online portal it must provide a great
experience in order to be successful. But the
principle goes deeper than that: increasingly
this shared experience of buying a meal
or a product (say a custom-made piece
of jewellery) is more important than the
product itself.
Social media makes it increasingly easy
to share this great experience, which may
then be a retailer’s best form of promotion.
It is now a proven fact that customers
will spend more on goods if the buying
experience is a good one, so providing a
great retail environment is still one of the
best ways to retain business in the face of
e-commerce competition.
Failing fast
It will come as no surprise that the internet
has fostered overnight sensations. A great
review on a dining or fashion magazine
website or blog can turn a new restaurant
into a cash cow with waiting lists to get a
table. But the opposite is also true, and
even successful restaurants or retailers can
quickly lose their novelty.
This should influence the way we
design shops, malls, restaurants and
offices to be flexible to a variety of new
or changed uses. Even leases should be
structured to allow retailers to come and
go. For example, allowing a percentage
of ‘pop up’ retail spaces within a mall or
building will encourage novelty and keep
customers returning.
Similarly, lavish and expensive fit-
outs can overshadow stores where visual
merchandising and the sheer theatre of
the retail offer would benefit more from
a low-key and easily interchangeable
background
PLANNING A
NEW STORE
OR RETAIL
BUSINESS?
So what do you need to think about
when planning a new store or retail
business? Here are my tips:
Ensure that the whole shopping
experience is a seamless and easy
one from the initial phone call
or computer search through to a
continuation of this experience
in-store. Encourage shoppers to use
their phones as part of this in-store
buying process and make this a
social experience.
Listen to what customers and
retail tenants want and don’t try to
impose a cookie cutter retail format
onto them. Nothing says ‘boring’
more than a row of very similar-
looking old school shops.
Foster cooperation and
collaboration between brands. A
customer’s shopping experience
will be greatly enhanced if a range
of complementary offers are
added into the one shop, mall or
even website.
Look to partner with communities.
New Zealand currently has
a real lack of truly exciting
community-based retail offers.
We have few heritage precinct
redevelopments drawing people
back into our main streets, which
would ease our urban sprawl and
transport problems.
Be agile. Design to embrace
change. By doing so this will also
not only future-proof our retail
developments, but also make
them more exciting in the minds of
our customers.
Carpet Court in Albany
UNDERSTANDING THE NEW RULES OF RETAIL

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Spiralling house prices
Purchasing residential property in the
current market can be daunting. There
is incredible competition at the time of
writing for residential property, particularly
in Auckland, Wellington and certain other
smaller centres and towns around the
country. Low interest rates and the buoyant
economy, along with healthy immigration
and Kiwis returning home, has resulted
in residential house prices increasing
rapidly. There is not enough stock to satisfy
demand and people are committing to
large debts. No doubt the fall-out from
Brexit will add to the demand, with even
more Kiwis coming home and a new
generation of £10 Poms emerging.
P damage to rental properties
The manufacture of P is highly toxic.
The contamination emanating from the
manufacturing process gets into all parts
of the house, usually at levels much
higher than the Ministry of Health would
recommend as a safe environment to
live in. The fumes from the process get
into the wall linings, scotias, skirting
boards and potentially the insulation. Of
course it also gets into the ceiling linings,
curtains, carpet, joinery etc. The clean up
can be very expensive, with all of these
items stripped carefully from a house
and disposed of safely. In extreme cases,
houses are demolished because the cost to
fix is greater than the value of the house. I
have heard of one instance where the soil
around the house also needed removal.
The latest data from Housing
New Zealand had 688 of its properties
testing positive for P between 1 June
2015 and 27 May 2016, which is over 200%
higher than the previous 12 months. In the
THE ‘P’SOUPER
OF THE 21ST
CENTURY
EFFECTS ON RENTAL PROPERTIES,
INSURANCE AND SELLING A HOUSE
VAUGHAN WILSON
Apart from significant increases in house values spreading throughout the country, the other
residential issue to occupy the newspaper headlines this year has been methamphetamine,
otherwise known as ‘P’.
P drug manufacturers are
getting creative with the
street name Cook a Batch
– a play on the holiday
renting firm Book a Batch
– where they rent a house
for say a week, cook the
drugs and then vacate.

six months to March 2016 they spent $5.8
million on P testing and remediation. A
typical cost to decontaminate was $30,000
and five properties had to be demolished
due to the level of contamination (Housing
New Zealand has 64,000 properties).
Landlord’s insurance
Then there is insurance. Will the
landowner’s insurance company pay up?
Were the appropriate controls put in place
prior to the lease beginning and regular
checks made? One landlord I spoke to
makes each new tenant sign a contract that
they will not have P manufacture or P on
the premises. They also carry out a P test
using an expert at the end of each tenancy.
That way the landlord knows if each tenant
as they leave has smoked or cooked P on
the premises and, if so, they can then take
the appropriate remedies. It also provides
a yardstick and peace of mind for the new
tenant. This landlord has not had any P on
their property since bringing this system
into play.
Short-term rentals as P labs
P drug manufacturers are getting creative
with the street name Cook a Batch – a play
on the holiday renting firm Book a Batch
– where they rent a house for say a week,
cook the drugs and then vacate. The owner
and future renters are none the wiser, at
least initially. A variation is renting a motel
unit with a kitchen for a length of time and
doing the same.
P testing companies are springing up
all over New Zealand to test houses and
other buildings for P. It has become very
common to find evidence of P, meaning
it was smoked within the tenancy, but far
less so to find it in intense enough levels
to suggest its manufacture. Costs for
testing can start at $25 for a DIY kit, which
will only tell if P is present. For a more
comprehensive test, a P test professional
can cost anything from $249 and it can
increase to thousands of dollars, depending
on the size of the property and the severity
of the contamination.
The quality of P testing varies. Swabs
from the wall tend to be taken and
analysed. More accurate testing is with
a hand-held device or with swabs being
sent to a lab, but this can take up to 10
days to get a result. The swabs taken in the
immediate location of the manufacture
or smoking of the drug are much higher
than elsewhere, but due to it being in the
atmosphere the fumes do waft around a
room to other parts of the building.
WHY USERS
PREFER P
P has been in a huge growth phase in the last few
years, becoming the drug of choice for some and
handed out for free by dealers to first-time users.
If there is mandatory or random drug testing in
workplaces, P is often preferred because it does
not stay in the system very long (like marijuana),
which makes it easier to pass drug tests. P works by
activating the pleasure chemical dopamine. A normal
high without drugs releases 100 units and a cocaine
buzz about 400 units. P releases about 1,250 units.
Vaughan Wilson is a Director of
Wilson Hurst Property Services
operating in Auckland, Wellington
and Christchurch and specialising in
property consultancy.
e: vaughan@wilsonhurst.co.nz
P manufacture and supply
P is also a major problem for authorities, with increasing amounts of the
drug and of the base product being illegally imported into New Zealand from
manufacturers and/or procurers of the base product. The most common
form of the base product is pseudoephedrine, which is found in flu capsules.
Illegal drug manufacturers have attempted to purchase the flu pills legally.
However the authorities have restricted the volume of these pills people
can purchase since the early 2000s, requiring a semi-complicated logistics
exercise by P manufacturers to obtain enough pills to make it. Alternatively,
the pills are illegally imported.
Once accumulated, the pseudoephedrine is extracted and used in
the manufacture of P. Think of the TV programme Breaking Bad and you
can understand the process and the pitfalls. Those with an intermediate
understanding of chemistry and some suitable equipment can ‘cook’ it up.
This cooking requires at the very least a kitchen, which is a problem for
residential investors with tenants renting a house to cook the drugs.
House sellers testing for P
P testing has become very popular, and
with the recent media attention testers
are being run off their feet. This is partly
because of the volume of residential
house sales, but also due to cautiousness
from prospective purchasers concerned
about what has appeared in the media.
Testing for P may eventually become a
mandatory requirement from the banks in

the same way that builder’s reports, LIMs
and valuations are largely now mainstream
requirements.
While it not yet compulsory, it has made
the purchasing process for buyers tricky.
Sellers who may have a fear or an inkling
there could be traces of P at their property
are in some cases turning down conditional
offers that require a P test to avoid the
ramifications of a positive test. These
ramifications include:
Further testing to determine the extent of
the contamination
Disclosing the information to all
prospective buyers
Offering a reduced purchase price, taking
into consideration the clean up costs for
the buyer if they are still interested
The risk that the property does not sell.
Altered LIM report
Generally, the residue from P being smoked
within a tenancy is not harmful to health.
However with the manufacture of P the
harmful chemical levels are much, much
higher and expensive decontamination is
needed. If the Police discover a P lab, they
can place this on the property’s LIM so that
any prospective purchaser will be aware of
its history.
Health effects of living in
former P labs
So what happens to people who then
inhabit a house, motel or other dwelling
after a drug manufacturer has cooked P?
Generally, the health risks are low if the
previous inhabitants have only smoked the
drug, similar to cigarette smoke. However if
the P has been cooked on the property the
health risks can be much more severe and
can lead to breathing and other respiratory
problems, insomnia, headaches, chest
infections, and other signs associated
with poisoning. Long-term contamination
can lead to neurological damage, skin
irritations, and kidney failure and damage.
Testing standards for P
in properties
Currently there are no testing standards in
New Zealand for the existence of P, except
the 2010 Ministry of Health Guidelines
for the Remediation of Clandestine
Methamphetamine Laboratory Sites. A
technical committee has been selected to
formulate a New Zealand standard, which
will be responsible for the testing and
decontamination of meth-contaminated
properties. It should be completed by
early 2017.
Be cautious
Smoking P is becoming more common and
widespread and testing for this in housing
will no doubt become more popular with
time. However this level of contamination
is not usually dangerous to people’s health
and wellbeing. The manufacture of P, albeit
uncommon compared to the number of
houses in New Zealand, is much more
concerning and detrimental to people’s
health. It is also difficult and expensive
to remedy.
If you own a rental property, be vigilant
and careful when vetting prospective
tenants. P does not follow a certain
demographic. It is used by a wide cross-
THE ‘P’ SOUPER OF THE 21ST CENTURY

TIPS FOR LANDLORDS
If a landlord finds their property is contaminated they are in breach of
the Residential Tenancies Act 1986 if they do not de-contaminate before
renting the property to another tenant. However, there is no obligation for
landlords to test their property for P. The lessons learnt are:
1. If in doubt – get it tested. If you own a property for rent, have it tested
at the end of each tenancy and show the results to the incoming
tenant. If purchasing, get it tested prior to going unconditional.
There have been a number of high-profile stories in the media of
unsuspecting people buying a property and then finding out afterwards
it is contaminated.
2. Have tenants sign up to a non-use of P clause and provide the evidence
of the most recent test to show it is clean before their tenancy begins.
3. Install a P alarm, which can be rented for a monthly charge. It sends
out an alarm over the cellular network if P is being smoked or
manufactured and an alarm if someone is tampering with the device.
Some unscrupulous tenants have tried to overcome the alarms by
covering them with cardboard or something similar.
4. Be vigilant when renting a holiday home, crib or bach and also look to
having a P alarm installed.
5. When inspecting a property as a landlord or prospective purchaser
check to see if there are any tell-tale signs of P manufacture such as:
Brown dust on flat surfaces and red or yellow stains on the floors
Wallpaper falling off the walls or held to the wall with staples
or similar
Chemical stains around the kitchen sink, laundry, toilet or
stormwater drains
Oily residue on surfaces
Unusual chemical smells, blocked drains, missing light bulbs,
numerous chemical containers, stained glass equipment
and cookware
Cold tablet packages in the rubbish or lying around
Drug paraphernalia, including glass pipes and needles on
the property.
6. Insurance – make sure you understand your policy and what your
insurance company will or won’t cover, what your obligations are as
a landlord under the policy if cover is required, and read the fine
print. You could be paying the highest premium on a rental property
for peace of mind when it is tenanted. However the reality is that
insurance companies are aware of the costs involved and the growing
issue that is P, both smoking and manufacturing, and will often avoid
paying out wherever possible.
If the Police discover
a P lab, they can
place this on the
property’s LIM so
that any prospective
purchaser will be
aware of its history.
section of New Zealanders, and assuming that it only
exists in one type or location of housing stock could
be to your detriment.
Similarly, when purchasing a property, have a
good look around for the signs of P manufacture and
if concerned get it tested. Get peace of mind instead
of blowing your mind
Related reading
http://i.stuff.co.nz/taranaki-daily-news/
news/80943371/profile-taranaki-meth-tester-karen-
baker-talks-about-phouses.adaptive.html
http://i.stuff.co.nz/national/79552078/The-industry-
growing-around-the-meth-epidemic
www.stuff.co.nz/national/health/80909747/qa-what-
you-need-to-know-about-methamphetamine-
contamination
www.stuff.co.nz/national/80090434/hnz-
chasing-christchurch-woman-for-20000-over-
pcontaminated-house

Major benefits not being taken up
Continued evidence of 20-30% reductions
in the cost of structural systems when
using new materials and technologies, such
as cross-laminated timber (CLT), is not a
common dialogue and in some circles is all
but a whisper. However as the construction
boom continues to attract attention some
industry groups are beginning to question
why New Zealand lags behind in exploring
the uptake of new technologies, structural
systems and materials that are delivering
major benefits. Think cost reductions,
ready availability and much faster speed
of construction.
An industry ‘wedded to the status quo’,
comfortable in the idea of ‘set and forget’
systems, and educational or professional
development failure to keep abreast of
innovation has prevented New Zealand
from experiencing the benefits that are
increasingly evident in cities across the
world. This was a major theme of speakers
at a recent conference – ‘Changing
Perceptions of Engineered Timber for
Construction’ – held in Rotorua in May.
Rotorua Lakes Council
‘Wood First’ policy
The conference was organised by Grow
Rotorua, the council controlled economic
development arm of Rotorua Lakes Council
– notably the first council in New Zealand to
have a ‘Wood First’ policy. The policy is not
original and can be traced back to British
Columbia where an emphasis on timber
construction influenced the use of timber
across all architectural styles.
Domination of
concrete and steel
In New Zealand, even a cursory glance at
our city skylines highlights that concrete
and steel construction dominates. Entire
systems and supply chains have been built
up over decades and now represent our
construction tradition, particularly in the
commercial sphere. The capabilities of most
architects and engineers, through to the
understandings of investors and insurers
(not to mention local government officials),
are geared to retaining the status quo.
Worse, there is an almost tacit acceptance
that little will change in the short term.
JANE ARNOTT
Do property investors and developers contribute to the ‘brakes on’ mentality
that lurks behind the resistance to change in the construction sector?
Bealey Avenue Backpackers,
Christchurch under construction
(now occupied and run by
All Stars Inn on Bealey)
CONFERENCE TO CHANGE PERCEPTIONS OF
ENGINEERED TIMBER
CONSTRUCTION
DELIVERS A WORRYING INSIGHT

Concrete and steel is the mainstay of
multi-storey commercial and industrial
construction – include in this health and
hospital, retirement village, university and
school infrastructure.
But as ‘coalitions of the willing’ begin to
take shape the opportunities and benefits
associated with tall timber, mass timber,
engineered timber, off-site construction
etc will eventually attract the interest that
drives change asserts Francis Pauwels,
CEO of Grow Rotorua. ‘We simply can’t
deny the reality of dramatic improvements
in cost, labour, timeframes plus the
healthier living environments afforded by
engineered timber and other timbers with
embedded technology.’
Currently there are small groups of
highly qualified and capable people who
fully understand the benefits of engineered
timber but there are few vehicles to drive
these home, states Dr Michael Newcombe,
Jane Arnott is a writer and
strategist who has worked in senior
management and consulting roles
within the cement and concrete,
timber and wood processing
industries and engineering and
architecture sectors.
e: janerarnott@gmail.com
Aerial view of Bealey Avenue
Backpackers, Christchurch
Continued evidence of 20-30% reductions
in the cost of structural systems when using
new materials and technologies, such as cross-
laminated timber (CLT), is not a common
dialogue and in some circles is all but a whisper.

General Manager of Kirk Roberts Consulting
Engineers. He was a keynote speaker at the
conference and is one of New Zealand’s
most qualified and experienced structural
engineers in the field of timber technology.
Dr Newcombe stressed the importance
of a new industry body that could actively
assist in providing and promoting technical
information and knowledge transfer.
‘Without sustained access to information
even those with a real passion for timber
and industry transformation are stymied.’
Rising costs should be
causing rethink
The rising cost of the ‘big three’ – building
materials, construction and ownership –
dominates the media. That New Zealand
needs to find serious and credible
alternatives to the status quo is hardly
news. But instead of this message being
forced home by a disgruntled timber
industry, the main call for change is being
spearheaded by engineers and architects
who are convinced this country can ill
afford to marginalise the very building
technologies and materials that have a
growing track record in reversing the trend
of spiralling costs.
According to David Reid, President of
the Timber Design Society (a technical
subgroup of IPENZ), ‘There are massive
opportunities to take increased advantage
of engineered timber as the primary
structural system in, for example, multi-
storey commercial buildings. Overseas
experience from Australia, Europe and
North America repeatedly demonstrates
that these buildings can be constructed
quickly and cost-efficiently. These gains are
in addition to the environmental benefits of
using timber.’
CONFERENCE DELIVERS A WORRYING INSIGHT
ACC Building Rotorua. Photo: Grow Rotorua & Ray Cook R&B Consultants
Arguments for new technology
The arguments for new technology are
difficult to sweep aside. As Dr Newcombe
explains, traditional supply chains are
stretched, construction lead times are
excessive and clients are looking for
alternatives that are cost-effective and
rapid to build. ‘As engineers, we are well
informed about these types of issues and
we need to collectively and collaboratively
evaluate how engineered timber such as
CLT panels, off-site construction and ‘third
wave’ CNC cutting tools can be applied,’
he explains.
He also highlighted at the conference
that concept or preliminary designs
geared for structural systems in concrete
and steel preclude the use of engineered
timber and this undermines the
opportunity for genuine cost comparisons.
‘While engineered timber is a credible
structural system it is not one that can
be applied midway through the process.
Early engagement of the project team
is essential, but problematic, given the
traditional procurement and tendering
strategies we have in New Zealand,’ he says.
‘There are massive
opportunities to take
increased advantage of
engineered timber as
the primary structural
system in, for
example, multi-storey
commercial buildings.’

Strong collaboration
and good design
Dr Newcombe advocates for strong
collaboration prior to concept design, and
both a solid understanding and integration
of different supply chains along with
respect for design issues. Fabricators
and manufacturers also need to be fully
engaged. ‘We need to develop the habit of
building effective and cohesive teams that
have a common purpose in delivering new
technology within a project management
framework that is cost-effective and
minimises risk,’ he says.
The theme of early engagement and
good design was elaborated on by another
keynote speaker, Dylan Brady, the Conductor
of Australian-based Decibel Architecture.
He highlighted the benefit of designing
projects so that they ‘could be wood’ but
not that they ‘must be wood’. According to
Mr Brady this creates the opportunity for
the timber industry to compete on an even
playing field and not be disadvantaged
by trying to mimic or redesign a project
initially considered in traditional steel and
reinforced concrete. ‘The confidence in
timber will be more likely if it is encouraged
rather than dictated,’ he explains.
Tendering on an
equal footing
Central to Mr Brady’s perspective is for
architects to design as enablers and
innovators looking for the best outcome
for clients, users and the environment. ‘We
must design to allow wood, and particularly
the new timber technologies, to stand up
on their own merits. This approach enables,
in a tender situation, for all materials and
systems to give it their best shot and this is
when the cost-effectiveness of alternative
structural systems and construction
methods will be reinforced. The alternative
of starting out with the assumption that
only concrete and steel will suffice is a sure
fire way of allowing the past to repeat itself.’
Poor knowledge about
new timber solutions
Unfortunately, even getting to the point
that a single design can accommodate
the peculiarities of each material can be
troublesome when knowledge is so thinly
spread. Pip Cheshire, Director of Cheshire
Architects and former President of the
New Zealand Institute of Architects, agrees.
‘Systems employing laminates, laminated
veneer or CLT timber as primary structural
systems remain rare,’ she says.
While acknowledging risk as a factor
behind the low uptake, Mr Cheshire urges
sector professionals to improve their
knowledge base. ‘It is well past time that
all of us in the industry have an equal
understanding and facility with new
methods of wood construction in larger
buildings and knowledge of the strengths
and opportunities offered by the new
engineered wood products.’
The question of how to bring about
change and enable innovative construction
methods and materials to get over the line
was debated by almost every speaker. Mr
Brady’s perspective on this was perhaps
one of the most enlightening, with ‘massive
timber’ construction being described
as a disruptor to existing business as
usual thinkers and engineered timber,
particularly CLT, being poorly understood
and therefore mistrusted or associated with
too much risk.
However Mr Brady was upbeat with
the view that ‘designers are the natural
leaders here – despite the risk aversion
that is characteristic of others.’ He stressed
how within his own practice it was knowing
beyond all doubt that business as usual
would not address the current and future
challenges of both human endeavour
and urban design that prompted further
analysis. He says that in designing
CLT buildings we are not talking about
architectural or engineering competence
per se, but collaboration and appreciation
of the bigger concept to completion.
‘New technologies don’t develop with
silo thinking and this is a major obstacle.
The challenge is to build much greater
capability in such things as the structural
detailing, the optimal utilisation of the
CLT panels in both internal and external
applications, the manufacturing capacity,
construction programme, transport
logistics etc. All require attention in order
to drive the cost efficiencies and real
dollar differences through the project,’
he explains.
‘At Decibel we have learnt that
harnessing innovation to economics is
critical because one thing builders and
investors are permanently attuned to is
cost and profit. If we can prove an increased
margin at the same time as a more
sustainable project we believe the market
will turn itself to the challenge.’
‘We must design to allow wood, and particularly the new
timber technologies, to stand up on their own merits.’

105 Punt Road, Melbourne is a 76 apartment building comprising eight storeys plus three
levels of basement building, which is currently taking shape. It will serve as a flagship
apartment building for Decibel Architecture, not only because of its use of CLT but
because the design sets out to achieve a unique typology of living to the local area. At
the conference Mr Brady highlighted the concept had developed around the idea of a
‘townhouse in the sky’, with common entrance corridors or ‘streets’ at every third level.
These create an entry to an interlocking network of dual-fronted apartments, creating
cross-ventilation and northern aspects to every apartment.
Within the project there are significant and
generous communal spaces at the ground
and roof levels, provided to establish and
enable creative living interactions between
residents and foster a sense of community.
Decibel Architecture designed the project
as evidence that procurement can occur
using not only traditional construction
methods, but also more innovative
techniques such as CLT.
The CLT design was costed in the
market, and returned a 20% reduction in
super-structure cost, resulting in a 10%
reduction in overall project cost, before
further savings in foundations, time,
carbon and reduced wastage have been
calculated. On purely economic grounds,
Mr Brady believes 105 Punt Road therefore
provided the developer with clear,
unbiased proof of concept.
The advantages of using CLT on sites such
as 105 Punt Road are:
Quick to install, with sequenced
panel unloading
Less noise
No wet trades, therefore
reduced crew size
No special tools needed
Easy to install first and second fix
Very precise structural openings
Dimensionally stable –
precise and plumb
Clean and dust-free environment
Cladding can be fixed straight to walls
Minimal construction waste
Airtightness
Cost savings – speed of construction
reduces overall programme and allows
early use by client, less weight in overall
structure results in more economic
design, load distribution of panel
structure reduces foundation loads
and costs, and enhanced programming
and high accuracy means windows
and mechanical and electrical (M&E)
systems can be pre-ordered.
As a flagship apartment building it
contributes to an already reinvigorated
market, but for New Zealand’s current
demands the deafening sound of high
volume repetition will take more than a
muffler or two to quell.
105 PUNT ROAD, MELBOURNE
A cost-effective high-rise CLT
apartment building
CONFERENCE DELIVERS A WORRYING INSIGHT
Schematic of 105 Punt Road,
Melbourne

What does a property advisor do?
We don’t know how to measure buildings.
We can’t tell you the gradient of a hill just by
looking at it or what type of joist you need
to affix columns to a ceiling (or if you need
joists at all). We are not privy to the dark
arts of property valuation, and personally I
had to double check the spelling of riparian
rights. So, just what do property advisors do?
According to the Property Institute of
NZ, property advisory may include (but is
not limited to) ‘strategic property reviews,
market research, advice on the purchase,
sale or leasing of property, due diligence,
new development or upgrading of property,
adding value through development
approvals, feasibility studies, assessing
portfolio mix, syndicate management, etc.’
This breadth of activities is supported by the
Australian Property Institute’s suggestion
that the term ‘property advisor’ could be
interchangeable with property economist
or consultant, asset manager, syndicate
manager, development manager or tenancy
representative.
At its core, however, property advisory
sees the provision of options and supporting
information to a client, often to tackle a
particular problem. Given the ubiquitous
nature of this work, property advisors can
be found working across the private, public
and charity sectors on a wide variety of
projects. My own career has seen me work
in the retail, logistics, education, housing
and corrections sectors and working as a
property advisor will give me the chance to
explore many more.
For the budding property advisor
communication, negotiation and
relationship management skills are of
paramount importance. While a property
advisor should avoid the temptation to
become a ‘jack of all trades, master of
none’, a decent grounding in property and
contract law will also stand them in good
stead. Finally, those advisors working in
a project management role will need a
certain tenacity in their approach to ensure
outcomes are delivered for the client and to
avoid project drift.
Why join the property
advisory community?
There have been problems in the past with
property professionals offering doubtful
advice, which can give property advisory a
bad name. My contention, however, is that
rather than shy away from this difficult label,
more and more individuals should embrace
the ‘property advisor’ title. Only by working
to improve the experience of clients when
dealing with property advisors can we hope
to avoid this potential risk for clients, and
better communicate the value we can add.
I also see that the catch-all nature of the
label offers a home to those who work in
the industry but don’t readily identify with
any one particular profession. For those who
may be juggling a variety of property roles
in the public or charity sector, this gives
the potential to work under a job title that
is well understood in the wider property
community without being pigeon-holed.
For these individuals, membership of the
property advisory community can offer
training, support and a sense of belonging.
We are currently working hard to improve
the education offering to members and will
be progressing a number of developments
in this area over the next year.
Ben Gill is Chair of the PINZ
Property Advisory Council.
e: bengill25@hotmail.com
The challenge
For existing members of other professional
communities, the broader remit of property
advisory offers the opportunity to branch
out into new sectors, take on new types of
project and widen current skill sets. You’ll
be joining a community of passionate
individuals who enjoy getting things done,
and you may be surprised at how many of
your current projects already fit squarely
within the property advisory space.
I can hardly claim objectivity on this
issue. As Chair of PINZ’s Property Advisory
Council, I would love nothing more than
to see our numbers grow, and am working
with the committee to increase the
visibility of our community and attract new
members. But I am equally convinced that
to continue to grow our community, we
need some brave and experienced property
professionals to move over from other
communities of practice
FOCUSBEN GILL
Property advisory is an area that has been less well defined than others in the property sector. We
need to mark a clear space that will encourage new members and encourage experienced property
professionals to move over from other communities of practice.
ON PROPERTY
ADVISORS

Why do Auckland house prices continue
to defy gravity? The predominant view is
that housing supply has lagged behind
demand, driven by population growth,
which has elevated house prices. Both
the National and Labour Party are calling
in unison for Auckland Council to both
intensify and expand outwards in order
to increase supply, the assumption being
that new supply is the key to ‘solving’ the
city’s deplorable housing affordability crisis.
At the PINZ annual conference this June I
challenged this thinking and argued that
flooding the market with new houses and
apartments will not bring down prices, but
will instead worsen the crisis.
Credit expansion
A largely overlooked driving force behind
house price growth in Auckland and
countless other housing markets is credit
expansion, which is brought about through
deregulation of the banking industry and
fierce competition amongst banks for profit
and market share. The extent to which
pumping money into a housing market can
raise house prices has been the subject
of several research papers in the wake
of the global financial crisis. In the OECD
report titled Economic Policy Reforms
2011, the authors remarked that ‘financial
deregulation is estimated to have increased
real house prices by as much as 30% in the
DEFYING
GRAVITY
EASY MONEY
AND HOUSE
PRICES
MICHAEL REHM
A comparison of Auckland and Dublin suggests that flooding a housing market with new supply is
no silver bullet for runaway house prices. While pundits and politicians chase supply geese, banks
are busy blowing housing bubbles through credit expansion.

Dr Michael Rehm is a Senior
Lecturer in the Department of
Property at the University of
Auckland Business School.
e: m.rehm@auckland.ac.nz
average OECD country over 1980 to 2005.’
Two 2015 papers authored by US Federal
Reserve staff (Anenburg et al. and Favara &
Imbs) further found that increases in credit
availability explained between 30% and 50%
of the change in US house prices between
1994 and 2005.
Thanks to widespread deregulation
of the financial sector in the 1980s, both
in New Zealand and around the globe,
longstanding prescriptive restrictions on
how much and where banks lend were
lifted and banks were actively encouraged
to compete for market share and profit. In
New Zealand, this resulted in banks shifting
their attention from lending to economically
productive activities such as manufacturing
and business to the unproductive
housing sector.
In 1984, manufacturing and business
accounted for 40% of bank lending, while
housing comprised less than 14%. Fast
forward to 2016 and manufacturing and
business now comprise only 9% of lending,
while housing dominates at 52%. Banks
have sought profit and found it in the
housing market. No other industry presents
individual company profits in terms of
billions, rather than millions, of dollars.
What has occurred slowly over time
is that banks have continued to extend
ever-increasing amounts of credit against
relatively stagnant borrower incomes. This
essentially enables borrowers to further
leverage their income to ‘afford’ pricier
and pricier houses and apartments. Banks
must do this to successfully compete for
market share. First-time buyers determined
to get into the market, homeowners
wanting to climb the next rung of the
property ladder, or investors wishing to
acquire another investment property will
gravitate to the lender who will enable their
desired purchase.
Debt-to-income ratio
At the PINZ conference I presented a
number of graphs from a range of countries
illustrating slowly growing (or falling as in
the case of the US) real incomes against a
backdrop of rapidly rising household debt
(home loans) and house prices. Figure 1
shows New Zealand’s aggregate nominal
value of residential property alongside
households’ aggregate debt-to-income (DTI)
rate. DTI depicted as a horizontal line in
this figure signifies credit is treading water
and keeping pace with household income.
Figure 1: NZ aggregate house values and debt-to-income
Source: RBNZ
A largely
overlooked
driving force
behind house
price growth
in Auckland
and countless
other housing
markets is credit
expansion
House Value Debt-to-Income (RHS)
NominalHouseValue($NZMillions)
Dec98
Aug99
Apr00
Dec00
Aug01
Apr02
Dec02
Aug03
Apr04
Dec04
Aug05
Apr06
Dec06
Aug07
Apr08
Dec08
Aug09
Apr10
Dec10
Aug11
Apr12
Dec12
Aug13
Apr14
Dec14
Aug15
HouseholdDebtas%of
DisposableIncome
700,000
600,000
500,000
400,000
300,000
200,000
100,000
170
160
150
140
130
120
110
100
90

An upward slope in DTI indicates that
further credit is being extended against a
fixed amount of income, while a downward
sloping DTI reflects de-leveraging with
borrowers, in aggregate, paying down debt.
In general, as DTI increases so do house
prices. When DTI stagnates or declines,
house prices tend to do the same. This
pattern is not only found in New Zealand –
it is a global phenomenon.
Banks fuelling houses prices
What I find alarming is that the banks
themselves seem genuinely unaware that
their own activities are fuelling house
prices. Often in the media, and in the
academic literature on mortgage debt,
the onus is placed squarely on borrowers.
Individuals with varying backgrounds and
financial aptitude are somehow expected
to know their own personal debt limit
and when they over-borrow it is their own
fault. In reality, home lending is completely
controlled by banks. It is their call to
originate a new loan or not.
It is ironic that on 20 July David Hisco,
the CEO of ANZ, publicly proclaimed in
the New Zealand Herald that the Auckland
housing market is over-cooked without
realising that he himself is a head chef.
Although Mr Hisco didn’t acknowledge
the role that lenders play in the housing
affordability crisis, during a 23 July ‘Double
Shot Interview’ by interest.co.nz’s Gareth
Vaughan, he shed light on bankers’ fear
of losing market share. He explained that,
‘The banking market’s very competitive and,
again, this is a situation where [ANZ] may
have a view that we want to tighten our
lending conditions and pull back, but unless
there’s a generally shared view that now
is a time where we need to navigate more
carefully, well then that business will just
go elsewhere.’
Effect of immigration
David Hisco’s explanation for the over-
cooked Auckland housing market hits
the common threads of insufficient
housing supply and high immigration.
I did not touch on immigration at the PINZ
conference, but will address it now by
pointing out that permanent immigrants
to New Zealand, of which I myself am one,
generally begin their time here as renters
and not homeowners.
In the absence of hard local evidence, I
turned to a 2015 report by Oxford University
titled Migrants and Housing in the UK,
which found that 74% of recent immigrants
reside in private rental accommodation.
Furthermore since Auckland is one of
the most over-cooked housing markets
internationally, it is unrealistic to assume
that an immigrant will be cashing up
in their home country and coming to
New Zealand with sufficient funds to
outbid Kiwis already participating in our
hot market. More likely, they will come
with some savings and they will initially
rent. Their presence does add to aggregate
demand for rental housing, but they
are not responsible for Auckland’s high
house prices.
1986-91 1991-96 1996-01 2001-06 2006-13
New dwellings 31,638 35,252 37,063 44,898 33,435
New households 31,509 35,385 34,749 44,151 35,235
Dwelling surplus/deficit 129 (133) 2,314 747 (1,800)
Running surplus/deficit 129 (4) 2,310 3,057 1,257
DEFYING GRAVITY – EASY MONEY AND HOUSE PRICES
Table 1: Comparison of new dwellings and new households in Auckland
(1986-2013)
Source: Statistics NZ
The banks
themselves
seem genuinely
unaware that
their own
activities are
fuelling house
prices.

Chronic shortage of dwellings
By far the most cited reason for the
Auckland housing affordability crisis
is a chronic shortage of dwellings.
Insufficient housing supply in Auckland
has been recently elevated to ‘a matter
of national significance’ by the National-
led government. I have uncovered a wide
range of estimates as to the size of the
purported housing deficit. The Salvation
Army is somewhat conservative at 12,000 to
13,000 dwellings, while Auckland Council’s
Housing Project Office fears the current
(mid-2015) shortage of 15,000 is likely to
increase to 25,000 by 2018. The largest
estimate originates from MBIE which, in its
New Zealand Housing Report 2009/2010,
used projected household and home
construction figures to arrive at a 2011
deficit of 27,112 dwellings in Auckland.
With such estimates abounding, I
was surprised to find that the number
of occupied dwellings has consistently
exceeded the number of households within
the Auckland region in each of the past
seven censuses. For instance, on census day
in 2013 Auckland boasted 472,044 occupied
dwellings and 469,500 households. To
appreciate the net number of dwellings
added to Auckland, and the net increase
in households between each census, I
produced Table 1.
The difference between the number of
new dwellings and new households from
one census to the next is indicated in Table
1 as either a positive surplus or negative
deficit. Using the 1986 census as a baseline,
a running surplus/deficit is provided which
shows, as of 2013, that Auckland maintains
a slight surplus of 1,257 dwellings. This is
a far cry from MBIE’s estimated deficit of
27,000 dwellings.
Of course the above analysis does not
consider overcrowding or homelessness,
which are rightfully cited as reasons to
bolster supply, particularly social housing.
The key argument surrounding housing
supply, however, is that by dramatically
increasing the supply, house prices will
either fall outright or plateau. Recently
Arthur Grimes, former Chief Economist of
the Reserve Bank, suggested that 150,000
homes, representing a 30% boost to supply,
be built in Auckland over a period of five
years for the purpose of reducing house
prices by 40%. This is an ambitious goal
since it would require an average of 25,000
new dwellings to be built per year. That
happens to be double the maximum annual
output Auckland has ever achieved.
Dublin experience
There is, however, a housing market that
has recently experienced such a herculean
residential building boom: Dublin, Ireland.
Fortuitously Auckland and Dublin (city and
suburbs) have roughly the same population.
Figure 2 provides the annual number of
new dwellings constructed for each city
in vertical bars along with Dublin’s house
price index indicated by a solid line. It took
Dublin’s residential construction sector
six years to erect 99,041 new dwellings
between 2002 and 2007. At peak output in
2006, Dublin developers built just under
Figure 2: New dwellings built in Auckland and Dublin 1994-2015
Source: Central Statistics Office (Ireland)
Auckland Dublin Dublin House Prices (RHS)
NewDwellings
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
DublinHousePriceIndex
25,000
20,000
15,000
10,000
5,000
0
140
120
100
80
60
40
20
0
The key argument
surrounding
housing supply
is that by
dramatically
increasing the
supply, house
prices will either
fall outright or
plateau.

20,000 new houses and apartments. This
six-year building boom increased the
Dublin housing stock by 27%, which is close
to Arthur Grimes’ prescribed 30% housing
supply boost for Auckland to achieve his
anticipated 40% reduction in house prices.
According to the vast majority of
New Zealand’s property pundits and
politicians who demand more supply be
delivered in order to ‘solve’ Auckland’s
housing affordability crisis, Dublin’s
unprecedented rapid expansion of its
housing supply should have crashed its
housing market. Alas, rather than a sharp
drop in house prices, Dublin experienced
an 85% increase in prices between 2002 and
2007 during which its housing stock grew
27%. What’s more, unlike Auckland’s close
alignment between new dwellings and new
households, Ireland (including Dublin) has
consistently built more dwellings than new
household formations.
Figure 3 compares Ireland’s household
numbers from the country’s Central
Statistics Office with their housing
completions data. It should be noted that
demolitions are not included in these
figures so there will be some inherent
over-estimation of new housing supply.
Nevertheless the data shows a clear pattern
of over-supply, particularly in the boom
years. In 2006 alone, Ireland welcomed
50,000 surplus new dwellings in excess of
the number of new households formed that
year. Unsurprisingly, the number of new
households began overtaking new dwellings
from 2009 onwards as construction activity
died out following the global financial crisis.
Glut of new houses
will fuel prices
There are two main reasons why flooding
a red hot housing market with new supply
will fuel house prices rather than reduce
them. First, if the new supply is targeted
towards the upper end of the market (as
in Auckland), the associated high prices of
such new houses and apartments will tend
to increase median and mean sales price
statistics, which are the dominant metrics
of many housing markets such as Auckland.
This would not be the case if a more
complex house price index was developed
to more accurately track house price
movements. In that case, the location of the
new supply along with the new dwellings’
physical attributes and quality will be taken
into account.
Arguably the key reason why a glut of
new houses will fuel prices is that each
of these new houses and apartments will
boost sales volumes. These new properties
will be sold alongside existing homes from
the secondary market. At the peak of the
market in 2006 a total of 93,410 dwellings
were built and sold in Ireland. Research
suggests that higher sales volumes
place upward pressure on house prices.
Essentially, high trading volumes assist
prices to race ahead.
So what has been driving Dublin,
Auckland and other cities’ house prices
during the global house price boom,
which saw some markets such as Dublin
temporarily derailed by the global financial
crisis while others like Auckland were
largely untouched? Unlike Prime Minister
John Key, who suggested recently that all
Figure 3: Ireland – new dwellings vs new households
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
60,000
50,000
40,000
30,000
20,000
10,000
–
(10,000)
(20,000)
(30,000)
Source: Central Statistics Office (Ireland)
DEFYING GRAVITY – EASY MONEY AND HOUSE PRICES

Flooding the Auckland market with tens
of thousands of new houses on converted
farm paddocks and high-rise apartments
near downtown will not bring down
prices. In the absence of effective policies,
an ambitious building programme will
likely make matters worse.
roads lead back to housing supply, it is my
view that all roads lead to credit expansion.
Although fundamentals such as supply
and demand play a role in determining
house prices, two prerequisites are required
to enable owner-occupants to make
their eye-watering winning bids at home
auctions or investors to purchase rental
properties yielding returns at or below term
deposit rates:
First, market participants, including
lenders, must firmly believe that house
prices will continue to rise.
Secondly, lenders and borrowers must
collude to further leverage against
borrower income.
The latter is paramount because without
the additional leverage (credit expansion),
house price growth is tied to income growth
particularly since Kiwis, like their OECD
counterparts, have dreadful savings rates.
The credit expansion cycle involves
the coupling of widespread expectations
of higher house prices and banks’ fear
of losing profit and market share, which
results in banks electing to extend
increasing amounts of mortgage debt
against borrowers’ incomes. With slightly
inflated home loan pre-approvals in-hand
house hunters can succeed at auction.
News reports of higher house prices,
incessant immigration, and Auckland’s
inability to adequately supply the market
with new houses reinforces the notion that
house prices must continue to rise. The next
wave of prospective buyers sit down with
their mortgage broker or mobile mortgage
manager and the cycle repeats.
While home buyers using overseas
funds and non-bank lenders also contribute
to the flow of capital into the Auckland
housing market, these players are largely
along for the ride. Mortgage lending from
the main trading banks is the primary
driving force behind credit expansion and
runaway house prices.
Prices must be brought down
Sadly there is no way of backing out of
Auckland’s housing affordability crisis
without economic pain and political
fall-out. If policy-makers genuinely wish
to make housing affordable once more,
prices must be brought down. Flooding the
Auckland market with tens of thousands of
new houses on converted farm paddocks
and high-rise apartments near downtown
will not bring down prices. In the absence
of effective policies, an ambitious building
programme will likely make matters worse.
The most rapid and effective means
of reducing house prices is by restricting
credit. Loan-to-value ‘speed limits’ are
helpful, but DTI ratios are likely to be fairer
and more effective. If New Zealand were to
adopt the Bank of England’s DTI limit of 4.5,
demand from Auckland property investors
would be drastically curtailed. First-time
home buyers will be locked out as well,
but it would be in their best interest not
to purchase into Auckland’s over-cooked
market if the Reserve Bank declares war on
house prices and implements policies to
reduce them

PINZ PROFILE
CBRE work
Natasha joined CBRE’s Auckland office in
2012 after graduation, specialising in the
valuation of major retail assets across
New Zealand. Working closely with CBRE’s
top clients, including Westfield NZ/Scentre
Group, AMP Capital, Kiwi Property and
Tainui Group Holdings, Natasha uses her
professional expertise to provide market
valuations and consultancy advice. She
works in a team of four valuers who
typically complete valuations of NZ$3-5
billion of retail property annually including
Sylvia Park, Botany Town Centre, Westfield
Albany and The Base.
One of the key milestones in Natasha’s
career is her work with Tainui Group
Holdings. In 2015, CBRE and Deutsche Craigs
were jointly appointed to sell The Base
shopping centre, the largest single retail
site in New Zealand. Due to her involvement
with the market valuations of the asset
since 2012, she helped prepare the financial
data for bidders and provided consultancy
advice to the brokers in preparation for the
marketing campaign.
Recent clients
Natasha undertakes valuations for financial
reporting and mortgage lending, rent
reviews, consultancy on lease structures,
due diligence advice on acquisitions and
disposals, development feasibility and
demographic studies. Notable recent
assignments include:
Zara and H&M consultancy
Natasha provided consultancy advice
to shopping centre owners on the
occupational parameters for some of the
largest international retailers. She worked
closely with colleagues throughout
Australasia to provide innovative, market-
leading advice to assist Kiwi Property in
securing the first Zara and H&M tenancies
in New Zealand.
Reading International – New Zealand
and Australian portfolio
Natasha has portfolio managed the
valuations of Reading International’s 18
New Zealand and Australian properties
since 2012. The valuations have been
Natasha
SarkarNatasha Sarkar is a young valuer who has just
won the 2016 Young Property Professional of
the Year award, is enjoying her career and is
giving back to the community.
In addition to client-
focused work, Natasha
is a recognised
contributor to CBRE, the
property industry and
the wider community.
undertaken for mortgage lending and
financial reporting purposes under
both International Financial Reporting
Standards and US GAAP, reporting
to Reading International’s CFO in
Los Angeles.
Harvey Norman – New Zealand portfolio
Natasha coordinated the portfolio and
market valuations of all 19 nationwide
properties owned by Harvey Norman.

Natasha is held in high regard by many
clients, who appreciate her attention
to detail, technical expertise, market
knowledge and enthusiasm.
Other involvement
In addition to client-focused work, Natasha
is a recognised contributor to CBRE, the
property industry and the wider community.
She formed the Future Leaders initiative
at CBRE, organising a range of networking
events for younger staff and clients. She
co-founded CBRE’s social netball team,
competing weekly against other corporate
teams. Natasha eagerly participates in
CBRE’s charity initiatives, including baking
for the Breast Cancer Foundation and
Cancer Society annual appeals and cooking
for families at Ronald McDonald House.
She is also involved with CBRE’s annual
Green Week, helping raise awareness about
sustainability and environmental issues by
partaking in activities such as running to
work with colleagues.
Outside of the industry Natasha
contributes to the community and supports
various philanthropic causes. She is a
refugee support volunteer with the Red
Cross Refugee Resettlement Programme,
most recently assisting a young family from
Afghanistan settle in Auckland. She also
volunteers weekly with Acting Up!, a free
drama workshop for young people with
special needs. Natasha is a keen netballer,
playing at club level for College Rifles
and competitive indoor netball. Her other
hobbies include fitness fads, book club
and diving.
RICS Property Industry
Charity Ball
Natasha was a key member of the
committee that organised the RICS Property
Industry Charity Ball in 2015. Her main
role was to undertake the marketing
and coordination of the event, liaising
with NZME to prepare articles in the
New Zealand Herald, along with print and
digital advertising to promote the event.
The ball was attended by over 600 people
and raised almost $20,000 for the Auckland
Cancer Society Research Centre.
University of Auckland
After completing a Bachelor of Commerce
(Finance and Accounting) and a Bachelor
of Property in 2011, Natasha remains
affiliated with the University of Auckland. In
Working closely with CBRE’s top clients, including
Westfield NZ/Scentre Group, AMP Capital, Kiwi
Property and Tainui Group Holdings, Natasha
uses her professional expertise to provide market
valuations and consultancy advice.
September, she spoke at the Department of
Property Alumni Evening – Life after BProp
– providing insight to students about her
career and its origins, along with partaking
in numerous Coffee Buddy programmes.
She regularly assists the Property
Department with its annual external
examination feedback sessions required
as part of the university’s accreditation
with RICS.
Mentoring role
Since being admitted to the Register of
Valuers in May 2015, Natasha has actively
mentored graduate valuers at CBRE. She
was the innovator behind peer-led mock
examinations for CBRE colleagues and
industry peers in preparation for their
registration examinations.
CBRE, PINZ and RICS awards
Universally respected by her colleagues,
Natasha was named Registered Valuer
of the Year at the CBRE New Zealand
Achievement Awards in 2015. She was also a
recipient of CBRE’s prestigious Pacific-wide
Circle of Excellence award for Excellence in
Valuations in 2014. She was selected from
over 400 valuers in the region and was
New Zealand’s youngest-ever recipient of
the award. Recently Natasha was awarded
the RICS Young Achiever of the Year 2016
and the PINZ Young Property Professional of
the Year 2016.
Future plans
Natasha is also a passionate traveller
and just commenced a gap year to travel
through Asia and the America’s. She hopes
to seek employment in London in 2017

AWARDS
WRAP UP
Property Innovation Award
Sponsor: Resene
Winner: Valocity
Valocity is a new provider for third party ordering of property valuation. Their new service
brought a number of firsts to the New Zealand market: the first ordering system to be
designed and developed in New Zealand for the local market; the first system to be open
to all Registered Valuers from the start; the first system which could be customised to suit
the needs of both lenders and Registered Valuers; and the first system to use cloud-based
next generation technology.
Property Business of the Year
Sponsor: Quickmap
Winner: Trust Management
Trust Management is New Zealand’s largest specialist provider of professional services
to the charities sector. They manage around $1.2 billion of assets including investment
property valued at around $600 million. Their approach to property management is led by
the principles of professionalism and quality and their consistent delivery of the highest
standards of professionalism is central to everything they do.
Young Property Professional of the Year
Sponsor: Simpson Grierson
Winner: Natasha Sarkar
Natasha graduated with a Bachelor of Property and a Bachelor of Commerce from
Auckland University and joined CBRE in 2012 as a Graduate Valuer. In 2015, she was named
Registered Valuer of the Year at the 2015 CBRE New Zealand Achievement Awards. She was
also the youngest ever recipient of CBRE’s prestigious Pacific-wide Circle of Excellence
award for Excellence in Valuations in 2014. Natasha is actively involved in a number of
community and charitable activities, including being featured as one TV One’s ‘Good
Sorts’. She also volunteers at Ronald McDonald House and is involved in the NZ Red Cross
Refugee Resettlement Programme, Shine, and other Mental Health Foundation fundraisers.
The following awards were presented at Riding the Wave annual PINZ
conference dinner held in Auckland on 16-17 June 2016.

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