Auckland commercial property, and the industrial, office & bulk retail sectors, all slipped on the MSCI index in the first quarter of 2019. Shopping centres continued their index decline, other retail was steady, and Wellington experienced the second quarter of capital growth after relying totally on income returns for the previous 3 quarters. MSCI (Morgan […]
Building homes for long-term rental went out of favour decades ago, aside from stop-start Housing NZ programmes. Now it’s back in New Zealand, but in its infancy, while overseas it’s become a recognised asset class for portfolio trading.
The US – without the same public sector dominance that has occurred in the UK, Australia & New Zealand since the Second World War – has a long-established corporate-built & -owned rental housing sector, commonly called multifamilies.
Without some of the support structure which exists in the US & UK, CBRE head of research Zoltan Moricz said it might be futile to throw them up as useful precedents for a similar evolution here.
Using local & US statistics, the CBRE research on build-to-rent development shows it can stack up on vacancy, diversification, cashflow, rental growth, yield & total returns.
CBRE said yesterday the commercial property sector in New Zealand had had its strongest half-year of transactions in nearly 5 years.