Property Council IPD Q3 2014 Returns

7 November 2014

Property Council IPD Q3 2014 Returns

Commercial Property in New Zealand continues to perform strongly as evidenced by the Property Council/IPD New Zealand’s Property Index results for the quarter ending September 2014.

The index reveals a total composite return for all classes of 12.9% which is comprised of 7.6% income return and 5.0% capital growth.

Dr Anthony De Francesco, Executive Director of IPD Australia and New Zealand says, “The strengthening investment return profile reflects a combination of favourable occupancy market fundamentals, underpinned by strong macroeconomic conditions. The stronger return profile is likely to be experienced across all commercial property sector markets.”

The all property return for New Zealand is now at its highest level since the March 2008 quarter. Industrial assets are also at their best since March 2008, returning 12.2% for the year to September. Retail returns are 11.1%, up on 9.5% from last quarter, but below their recent peak of 13.0% in Q3 2012.

Connal Townsend, Chief Executive Officer at Property Council says “The IPD results this quarter should continue to give confidence to New Zealand and international capital markets that the New Zealand commercial property sector is a desirable investment option. Results across all three main sectors show a steady performance both in terms of capital growth and income return.”

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The PCNZ/IPD New Zealand Quarterly Property Index consists of 28 contributing funds with a combined asset value of NZ$12.8bn held in 577 investments.

About Property Council New Zealand
Property Council is New Zealand’s commercial property voice. Property Council represents New Zealand's office, industrial, retail, property funds and multi-unit residential property owners, investors and managers. Property Council’s branches throughout the country represent some of the largest commercial property portfolios in Auckland, Waikato, Bay of Plenty, Wellington, East Coast/Hawkes Bay and the South Island and Otago region, the value of which exceeds billions.

ENDS

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