Offices lead commercial property returns

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

Relevant offers

Industries

Upper Hutt Brewtown playing it crafty Deflating air lounger experiences a put off InternetNZ warns messaging apps not always as private as people might think More people and goods flying through NZ skies than ever before Rebuild boom over for Canterbury business? Air New Zealand pulls in-flight Jaguar ad Veritas in talks with several parties but disputes Constellation store's actions Countdown passes buck on mouldy pies Trade Me to help address youth unemployment in Auckland Cos Bruyn leaves Downer for Fulton Hogan

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