Bumper year for commercial property
Hot demand for office space in Wellington and industrial buildings in Auckland helped commercial property produce its best ever returns in the year to March, figures from the Property Council show.
Tuesday, July 12th 2005, 5:54AM
by The Landlord
Where previously the residential housing market had boomed faster than commercial property, it is now slowing. The figures show strong growth in capital values pumping through the warehouse, factory and office space areas early in 2005.The figures are a further sign that the property market generally has remained stronger for longer than many expected, including the Reserve Bank, which has hiked interest rates to cool growth in prices.
"There's constant talk about a fall off in residential, but as far as we can tell commercial property is still going full bore," said Property Council national director Connal Townsend.
The Property Council's Investment Performance Index showed overall New Zealand commercial property returned 16.74 per cent in the year to March 31, including capital growth of 6.9 per cent and rental income of 9.37 per cent.
This is up from total returns of 13.72 per cent the previous year, when capital growth was 4.02 per cent and income was 9.42 per cent.
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