Categorized | Commercial, International

New Zealand Council Commerical Property Results

New Zealand Council Commerical Property Results
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The latest result generated by New Zealand Property Council IPD has shown the recovering process of commercial property market. Although the market is growing but the pace of recovery is still slow. The initial recorded index was calculated about 10% while the closing result for the year ending March 2011 has shown a bit lower figure which is 5.9%. This result is actually the sum of 8.3% income return and -2.2% capital growths. However, as said by Mr. Connal Townsend, this result will help investors to develop a confidence in their mind about slow and steady recovering process.

The result has also been supported by different macroeconomics indicators like employment growth and growth in retail sales and it has been proved from the side of IPD managing director of Australia and New Zealand Anthony De Francesco. They predicted that the result is showing a positive direction of soft economic outlook in a less time period.

According to Mr. De Francesco, the recovery speed always vary from sector to sector and depends on the ups and downs of the market for example it would vary from an outperforming retail and office to any industrial sector. It has also been proved from a six month’s survey of the Property Institute that 64% majority of rural sector is expecting the improvement after next six months. Moreover, they are also demanding for the increase in the property value of rural areas. However, the survey taken across the institute’s member shows that the demand of current residential property sector in commercial and industrial sector will remain unchanged

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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