Yields in New Zealand’s commercial property sector remain some of the highest in the world at over 6%, beating net operation income yields in Australia, the UK, the USA, Japan, and Ireland which sit around 4% to 4.5%.
• The latest IPD index results from global investment data company MSCI show that New Zealand net operation income yields come in at over 6%.
• MSCI global research Vice President Bryan Reid said the latest index highlighted the stabilisation of the global commercial property market, especially in office and retail.
“There is an emerging deceleration trend across international markets and across the world where income returns are getting squeezed and income yields are coming down.”
• Industrial property in New Zealand is thriving with total returns of 13.7%, as compared to the global average of 10.1%.
• New Zealand last year in the commercial sector was tagged as one of MSCI’s global stars so there is no surprise of the outcome of the results this year.
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