Colliers International has just released their October commercial property Research Report for New Zealand and according to Alan McMahon, Director of research and consulting at Colliers International, investors in share markets can be forgiven for wondering what season it is.
One day the NZX 50 (or the Dow or the FTSE, or any other bourse you care to name) is up 5%, the next it is down 4%. Company results are unpredictable, dividends may decline. It is impossible to predict what’s going to happen on any given day.
In the commercial property market, owners of shops or offices or warehouses are probably getting the same income that they got last month, and the month before that. It’s a safe haven in volatile times, which has been demonstrated recently by the keen yields achieved for well leased smaller investments around the country. As deposit and borrowing rates fall, and inflation dies away, appreciation of commercial property as the kind of investment that performs steadily, has a nice predictable cashflow, and lets you sleep at night, can only increase.
Click here to read the full report in PDF format.
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Alan McMahon,
Darren Park