Hot demand for commercial property

Last updated 09:19 25/03/2014

Relevant offers


Savvy customers force companies to cut prices at highest level since 1999 TPPA 'bigger opportunity than China free trade deal' says Business NZ ANZ had 3% of workers breach code of conduct in 2014 NZ dollar supported but not by TPP Stark Property breathes new life into Knox St building Wool merger could lead to 'hundreds' of job losses, Godfrey Hirst warns Kiwi Regional Airlines gears up for big test End in sight for multinational tax rorts? After four years of talks, Westpac retains most of Government banking contract Wynyard Group announces executive to take on product role

New Zealand has been rated a commercial property investment hot spot by one of Asia's largest investor organisations.

The Asian Association of Non-Listed Real Estate Investors (ANREV) represents property investors, mainly non-listed managed funds, that have combined property portfolios worth more than US$2 trillion (NZ$2.3t).

It has surveyed its members on their top locations for investment in the Asia-Pacific region this year, and for the first time in the survey's history New Zealand made it into the top 10, coming in at number eight.

Justin Kean, the head of research at JLL (formerly Jones Lang LaSalle) said the amount of capital coming into the commercial property market from both domestic and international investors was driving down yields.

"Institutional investors are back in buying mode and this means that foreign wealth will start finding its way into the New Zealand property market," Kean said.

If ANREV's members invested the equivalent of just 1 per cent of their assets it this country it would see US$20 billion in new capital coming into the country, he said.

However that would be unlikely, because JLL's research showed the total value of all commercial property sales made in this country last year was just over $2b, the highest since before the global financial crisis.

Ad Feedback

- Fairfax Media


Special offers

Featured Promotions

Sponsored Content