Offices lead commercial property returns

MICHAEL FOREMAN
Last updated 13:20 26/08/2014

Relevant offers

Industries

Waiheke restauranteurs say immigrant workers vital Cost cuts on cards as Spark dishes up self-service tools to price-conscious customers Inside New Zealand's mysterious fuel price plunge Chart of the day: Which age groups are coming to Invercargill? Sky's relationship with Vodafone and its rivals a minefield Ports of Auckland among first to report fall-out from ransomware attack Team New Zealand's innovation helped and hindered by budget No investigation into funding of Singapore-Canberra-Wellington route Visible cartons allowed in alcohol area How to protect your computer against the latest ransomware attack

The tightening labour market has helped commercial property deliver an average return of 11.1 per cent in the year ending in June 30, according to the latest figures from the Property Council.

The council's quarterly property index, which monitors 26 property funds, shows that the overall return was comprised of 7.7 per cent in income return and 3.1 per cent capital growth.

The office sector led the market, delivering an average return of 11.9 per cent.

International property benchmarking firm IPD, which compiles the index, said a tightening labour market was helping to boost demand for office space in key markets such as the Auckland CBD as there were more in people in work needing accomodating.

New Zealand commercial real estate returns had been outperforming the Australian market since September 2012, IPD said.

At 11.1 per cent, the New Zealand total return was about 1.4 percentage points higher than returns in Australia, IPD said.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content