Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Office sector leads New Zealand commercial property returns

Office sector leads New Zealand commercial property returns

Sydney, 22 August 2014: The PCNZ/IPD New Zealand Quarterly Property Index Q2 2014 results, released today, showed a total return of 11.1% for the year-ending June 2014. This was comprised of 7.7% income return and 3.1% capital growth.

The market was led by the office sector with a return of 11.9%. Performance in the office sector has been supported by a recovering labour market which has helped boost demand for office space in key markets like the Auckland CBD. According to Statistics New Zealand, the unemployment rate fell to 5.6% in the June quarter, its lowest level since March 2009, and full time employment growth, at 4.6%, was at its highest level in over nine years.

Anthony De Francesco, Executive Director at IPD said “The June quarter PCNZ/IPD Index release indicates the commercial property investment market remains on the recovery path. A strengthening in macroeconomic activity, driven by increase in construction activity, solid employment growth and retail sales growth, are indicating a positive economic outlook ahead. These positive factors should, in turn, be reflected in solid property investment returns.”

New Zealand real estate has been outperforming the Australian market since September 2012, a trend which continued in the June quarter. At 11.1%, the New Zealand total return is currently 138 basis points higher than returns across the Tasman Sea.

Connal Townsend, Chief Executive Officer at Property Council said “The IPD results this quarter are very gratifying and provide the market with a clear, reliable indication that the New Zealand economy in general and the commercial property sector in particular remain comfortably in recovery mode.”

The PCNZ/IPD New Zealand Quarterly Property Index consists of 26 contributing funds with a combined asset value of NZ$12.7bn held in 578 investments.

About IPD

IPD provides real estate benchmarking and portfolio analysis services to clients in over 30 countries around the world. These services incorporate more than 1,500 funds containing nearly 77,000 assets, with a total capital value of over USD 1.9 trillion. Each year, IPD produces more than 120 indexes helping real estate market transparency and performance comparisons, as well as nearly 600 benchmarks for client portfolios. IPD is a subsidiary of MSCI Inc., a leading provider of investment decision support tools to investors globally, and clients include real estate investors managers, consultants, lenders and occupiers. For further information on IPD, please visit www.ipd.com

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news