The commercial property market is matching the strength of the burgeoning housing market, new figures from the Property Council show.
Values have risen across all of the categories tracked by the Property Council in the three months to June, the first time this has happened since 1997, the council says.
The council
said property investments across all sectors returned 10.72 per cent for the year to June.
Annualised over the seven years to 2003, commercial property returned 8.8 per cent per annum, compared with bonds at 8.83 per cent and New Zealand equities at 8.08 per cent.
The top performing commercial property sectors in the three months to June were: New Zealand bulk retail (17.2 per cent), Auckland bulk retail (16.02 per cent), Wellington CBD office (12.6 per cent), Christchurch industrial (12.28 per cent), and New Zealand retail (11.57 per cent).
Colliers International director of corporate services Alan McMahon said leased property was retaining its appeal as a relatively low risk investment and was attracting investors who were paying good yields in expectation of capital gains.
- NZPA
