The Property Council /IPD quarterly commercial property index showed a return of 12.6% for the year to September – 7.5% income return, 4.7% capital growth.
The all-property return was at its highest level since the March 2008 quarter, led by the industrial sector, up 13.1% over the 12-months. Retail assets returned 11.6%, office 12.7%.
Auckland continued to outperform Wellington with total returns of 13.5% compared to Wellington’s 10.1%.
But Property Council chief executive Connal Townsend said only 15.3% of assets were revalued during the September quarter: “Due to the low levels of asset revaluations in the sample, it is important that users are fully aware that the risk of stock-specific circumstances disproportionately impacting sector and even all-property returns is high. The figures should therefore be treated as only indicative of market performance and should be considered within that context.”
Attribution: Property Council release.