There was a huge surge in sales of major commercial properties last year with retail properties leading the way, property services company JLL says.
According to JLL's New Zealand Transaction Trends report, which monitors commercial property sales priced at $5 million or more, the value of major retail properties sold last year was up 478% compared to 2013.
A total of $2 billion worth of major retail property sales occurred last year, an all time high which almost eclipsed $2.1 billion of major office building sales.
Sales were buoyant across all three of the major commercial property types monitored by JLL, with a total $5.1 billion of major transactions occurring last year, with office sales up 79% compared to 2013 and industrial property sales up 32% compared to 2013.
Overseas buyers accounted for $2.9 billion (57%) of sales, an all time high.
JLL said it expected overseas buyers to play an even more active role in the New Zealand market this year.
Auckland continues to dominate the market with 70% of transaction occurring within the region, followed by 13% in Wellington and 7% in Christchurch.
A larger driver of the exponential growth in sales was a number of regional shopping centres which sold last year, including a 49% stake in five Westfield shopping centres which was sold for $1 billion.
"Retail assets in the form of shopping malls and other large formats are now at the front of investors' minds, which has resulted in an all time high for retail," JLL's director of retail sales and leasing Chris Beasleigh said.
However the higher prices were forcing rental yields down.
"Yields across most markets have experienced downward pressure over the past 12 months," the report said.
"Increased interest and large amounts of capital in the top end of the market have driven yields lower.
"Secondary assets have also seen improved activity and as a result, yields have moved lower."
To read JLL's full (6 page) report on major commercial property transactions last year, click on this link.
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2 Comments
Its nuts , almost like being colonised with money , we are selling our assets to foreigners and we will regret it eventually when our CBD is in foreign hands .
One of the worst examples in Wilsons Parkling which is owned out of Hong Kong or Singapore .
It just an aggressive money making virtual monopoly that is ruthless in pursuit of the Dolllar
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