New Zealand's property market is receiving plenty of attention, and this time, much of the spotlight is falling on commercial real state.
Quarterly data from global property monitor IPD shows that when it comes to yearly returns, NZ is at 10.4 per cent, ahead of its long-term average of 10 per cent, according to National Business Review. IPD reports that 7.8 per cent of this comes from income return, with the rest belong to capital growth.
This positive news is boosted by Bayleys' third national Total Property report.
John Church, national director of commercial property at Bayleys, stated that despite three consecutive increases to the country's official cash rate by the Reserve Bank of New Zealand, the nation has much to offer investors.
"It takes time for rentals set on new leases to work their way through the market but it is inevitable that significant increases lie ahead," Mr Church said.
"With prices for land now heading back to – and in some cases exceeding – pre-global financial crisis levels, increased rentals are needed to make development projects viable. Companies are also once again under competitive pressure to provide market-leading premises to attract and retain staff and this will contribute to the upward push on rentals as well."
Of course, if you're seeking property investment advice, chances are you'll be hearing about the opportunities offered by residential property in NZ, as well.
After all, the Real Estate Institute of New Zealand reported in a July 14 media release that the national median dwelling price reached $427,250 during June, a significant rise from the previous year, as well as an increase from the previous month.
This provides investors with plenty of opportunity to benefit from capital growth with investment property in Hamilton and other areas throughout the country.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert