Auckland Commercial and Industrial Land Prices Hit 10-Year High Amid Structural Shortage

A structural shortage of zoned industrial and commercial land in Auckland has pushed values to $1190 per sqm, forcing development to shift toward southern regions.

By: AXL Media

Published: Apr 28, 2026, 3:43 AM EDT

Source: RNZ Pacific

Record-Breaking Land Values

Recent data from realestate.co.nz highlights a tightening grip on Auckland’s industrial and commercial sectors. In the 12 months leading to March 2026, land values reached an average of $1190 per square metre (sqm), marking the highest point in over a decade. This pricing surge is accompanied by a significant rise in the cost of existing structures; the average asking price for an industrial building in Auckland has exceeded $3.5 million for the first time. Realestate.co.nz CEO Sarah Wood identified this as a "structural shortage," noting that the lack of development-ready sites is now the primary driver of market behavior.

Shrinking Site Sizes and Domestic Demand

As prices soar, the physical footprint of available properties is shrinking. The average size of industrial listings has dropped to a record low of 1864 sqm—a stark contrast to the 5212 sqm average seen just ten years ago. This trend indicates that larger, contiguous blocks of land have largely been exhausted or subdivided. Market activity is currently being sustained by domestic investors, as international interest has cooled over the past year. Analysts suggest that the lack of large-scale sites is increasingly dictating project viability and forcing businesses to compromise on operational scale within the city limits.

The Southern Migration: Drury South Crossing

The scarcity of land in central and northern Auckland has shifted the region's industrial gravity southward. Drury South Crossing has emerged as one of the few remaining hubs capable of hosting large-scale operations. Chief Executive Stephen Hughes confirmed the region's limited capacity, stating that of the 100 hectares sold over the last five years, only 30 hectares remain. Hughes warned that the supply of "greenfield" industrial land at this scale is nearing exhaustion across the wider Auckland region, meaning early movers currently hold a significant strategic advantage.