New Zealand returns world class results

New Zealand returns world class results

Offshore investors look to New Zealand property markets

April 24, 2015

New Zealand is emerging as one of the preferred property markets for global investors.

This is a key finding in Colliers Internationals’ Capital Markets Report where prime average commercial, retail and industrial yields in Auckland and Wellington proved higher than their global counterparts.

Chris Dibble, National Manager of Research at Colliers International, says the world’s largest investment funds are now, more than ever, adopting a strategy of investing in New Zealand commercial real estate.

“While New Zealanders typically provide the lion’s share of purchasing activity, the motivations of offshore parties – searching for higher returns and asset diversification in a world with super-low interest rates and strong competition – have changed our investor landscape.”

The report confirms almost half the total value of properties sold for $5 million or more last year, was sold to offshore investors. This accounted for one fifth of all transactions.

Andrew Reed, International Director of Capital Markets at Colliers International, confirmed offshore investors’ interest in New Zealand is red hot.

“New Zealand is growing into an internationally recognised country for its commercial real estate, and its values are appreciating quickly.”

Reed says New Zealand will see more joint venture partnerships between offshore and domestic property companies in the future – particularly from China.

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Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices in 67 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.
In 2013, Colliers International completed over $2.56 billion worth of commercial property sales transactions and leased over one million square metres of commercial property in New Zealand. Find out more at http://www.colliers.co.nz
For the latest news from Colliers International, visit: New Zealand – colliers.co.nz/news International – colliers.com/news, follow us on Twitter: New Zealand – @Colliers_NZ International – @ColliersIntl, or visit us on LinkedIn: New Zealand or International.

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