Friday 19th November 2010 |
Text too small? |
A gradual slowing of the decline of commercial property capital values market is helping deliver improved investment returns, according to the Investment Property Databank.
The index, which broadly measures commercial property market performance, showed an overall total return of 6.2% for the 12 months ended Sept. 30, based on 367 properties with a value of $8.5 billion.
The return was made up of an 8.1% income return and a -1.8% capital return, the latter figure reflecting a slight downward adjustment to asset values over the previous year. The decline in capital values is slowing, said Anthony De Francesco, IPD’s managing director for Australia and New Zealand.
"It clearly highlights that the commercial property investment market is progressing through the recovery phase of the investment cycle, although moderating," he said. "The index release shows that the commercial property market is in the upswing phase."
Annualised total returns for the latest year for the office, industrial and retail sector indices stood at 4.6%, 7.1% and 7.7% respectively. There has been a significant improvement in the office property sector, driven by strengthening demand conditions, while the retail sector is showing signs of softening in line with a general moderation in retail demand.
De Francesco said the New Zealand property market has experienced a relatively mild downturn in comparison to other countries, and has moved closely in line with Australia's. The U.K, U.S.A and Ireland experienced the greatest decline in total return, being the most adversely impacted by the spill over from the global financial crisis.
(BusinessDesk)
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes