New Zealand commercial property market continues to improve | 12 November 2013
New Zealand’s commercial property market has shown dramatic improvements over the past year, according to new figures.
A report, constructed jointly by IPD New Zealand and The Property Council New Zealand, has indicated that the country’s commercial property showed returns of 12.4 per cent for the year ending September 2013. This represented a 25 per cent increase on the previous year and typical yields of 7.9 per cent and price rises of 4.2 per cent.
According to voxy.co.nz, this means that New Zealand’s commercial property market has now been outperforming Australia’s for more than a year.
Dr Anthony De Francesco, who is the executive director of IPD Australia and New Zealand, believes that the upturn in New Zealand’s commercial property will continue for the short-term future at least.
Speaking to scoop.co.nz, he said: “The IPD index results highlight that the New Zealand commercial property market remains on the upswing, outperforming many global counterparts.
“Solid performance of New Zealand property investment is consistent with improvement in underlying macroeconomic fundamentals. Expected strong economic growth in the near term should be reflected in performance of commercial property markets.”
Demand for office space in New Zealand is cited as the main factor behind the upturn. The local office space market currently offers returns more than five per cent higher than it did a year ago.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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