Tender Will Test Stability Of Property Market
Media Release from MAC Property
6 Feb 2008
Industrial Portfolio Tender Will Test Stability Of Queenstowns Property Market
The impact of recent interest rate uncertainty and reports of slowing residential property markets around the country will be tested today with the release of a portfolio of Queenstown Industrial property for sale. The mix of property available will be likely to catch the interest of not just seasoned commercial investors and developers, but entry level investors and owner occupiers alike.
There are 12 properties that make up the portfolio with a mixture of prime investment options with single tenants on long term leases, or multiple tenants in individually unit titled properties able to be sold separately.
MAC Property Commercial Consultant Mark Simpson who is marketing the portfolio says “The ability to acquire quality Queenstown Industrial property is getting harder, with demand still outstripping supply in terms of available industrial land and improved property. “Our commercial market here in Queenstown does tend to operate under slightly different fundamentals than other commercial markets around the country. We have strong economic growth with development and tourism still a major influencing factor. Geographically we are constrained which tends to support underlying value growth in a Tourism Resort”.
“This is reflected in recent research which indicates an average compounded capital growth of 12.75% in commercial property over the last 12 years and rental growth at circa 5-6% per year. If you take the combined returns on this basis at 17-18% p.a. it tells a pretty impressive story for long term commercial property investors, especially during uncertain times”
There is currently an acute shortage of Industrial / business zoned land around Queenstown. A 2006 study commissioned by Council indicated that there is currently around 59 hectares of Industrial and Business zoned land around Queenstown, with a population base at 16,000. A forecast population increase to just over 35,000 by 2026 indicated a requirement for an additional 67 hectares of business and industrial land. With limited options currently available for new land, and this type of demand, the fundamentals are still in place for continued growth in values of industrial property.
The portfolio is being marketed For Sale by Tender by commercial agency MAC Property with a closing date of 7 March 2008 (if not sold prior).