Part 2 - Rent Growth Prospects in Preferred Property Asset Sectors
This final report of a two part series, examines why we see good value in Asia Pacific real estate by comparing property yields with yields on bond and equities. While property yields are mostly higher, they may not be sustainable because the COVID-19 recession may impact income from property assets.
In Auckland, strong demand, office conversion to residential and hotel space and limited new development have pressured the demand and supply balance in the CBD for almost a decade. Vacancy is a record low of 4.7%, and rent has risen by 3.9% p.a over the past five years. New supply and the impact of COVID-19 will, however, see conditions ease over the short term.