8 Mar 2016

Foreign investors eye NZ commercial property

6:39 pm on 8 March 2016

New Zealand is proving attractive for foreign investors with its high yields and affordable prices, one of the world's leading property investment companies says.

CBRE head of global of research Nick Axford said rental income yields of 6 percent are attractive in a low or negative interest rate environment.

Retail Property Group is understood to hold a licence to occupy the island, and so far won't allow the sign to be moved.

Retail Property Group is understood to hold a licence to occupy the island, and so far won't allow the sign to be moved. Photo: RNZ/ Todd Niall

He said investors were looking for safe and solid investments because of the risks from a slowing global economy, and real estate offered a real asset with usually secure returns.

Mr Axford said overseas investors were particularly interested in industrial and retail properties, as an increasing number of international retailers look to establish themselves in New Zealand.

He said the strong growth in e-commerce has boosted demand for properties suitable for logistics, storage and distribution, while shops were also being sought.

"We're seeing a lot of influx of retailers into the New Zealand market because high net migration is boosting spending and consumption.

"It could bode quite well for the retail market and pose some exciting times in Auckland in particular, where there's some scope for development of good quality shopping centres and high quality retail."

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