NZ commercial property market delivers a strong return

New Zealand commercial property market delivers a strong return

The Property Council New Zealand/MSCI New Zealand All Property Index results released show a total return of 11.7% for the year ending March 2015. This result is the above annualised return to December 2014 of 11.3% and above the long-run average return of 10.6%.

The total annualised returns for the retail sector has increased to 11.6%, while the industrial sector returns have increased to a total of 12.8%. The office sector total return has increased by 10.9%.

Property Council chief executive Connal Townsend says the country’s commercial property results are indicative of a strong and growing market.

“A total annualised returns of 11.7% is extremely strong in comparison to Australia and other countries in the broader MSCI index. The particularly strong performance of the Auckland market should be taken advantage of. Christchurch is perhaps a little bit too small to offer readings post-earthquakes, but as the rebuild continues the sample will become larger.

“The results are strong for all the three main sectors that make up the index: industrial, retail and office. A particular interest is the very strong performance of the industrial commercial property across New Zealand. Retail is the second strongest performer, with extremely good returns.”

Property Council New Zealand/MSCI New Zealand All Property Index provides a broad measure of returns for commercial property investment in New Zealand. The index database is comprised of property assets from 25 participating funds with a combined asset value of NZ$12.8 billion representing 570 investments.

ENDS

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