Australian investors are increasingly looking at New Zealand to satisfy their demand for real estate investment, global real estate consultancy Jones Lang LaSalle says.
Thursday, August 21st 2003, 3:16AM
by The Landlord
The firm's New Zealand manager, Peter Coman, said Australian investors were frustrated in their own market by a lack of investment opportunity and sluggish tenant demand yesterday.
"Total commercial sales in Australia during the first six months (of this year) totalled $A5.1 billion ($NZ5.78 billion), representing a turnover of less than 5 per cent of total investment grade stock," he said.
"This does not come close to satisfying investment demand, as the weight of capital seeking a home in property continues to grow."
The attractions of the New Zealand property markets included no stamp duty or capital gains taxes, attractive yield play and positive gearing margins.
"Yields for prime commercial property in New Zealand range from 8 per cent to 10 per cent, compared to the more typical range of 6.5-8.5 per cent in major Australian cities," Mr Coman said...
