Foreign investors eye Kiwi retail properties
Nick Axford, CBRE head of global research, said New Zealand is proving attractive to foreign investors because of its affordable prices, according to a report from RadioNZ.
Axford said rental income yields of six per cent are attractive in a low or negative interest rate environment.
Due to the rising risks from a slowing global economy, Axford said foreign investors are continuously looking for safe and solid investments, and they have seen that in real estate. He said real estate offers a real asset with usually secure returns.
Axford said the strong growth in e-commerce has increased the demand for properties usually used for logistics, and storage and distribution, as well as shops.
“We’re seeing a lot of influx of retailers into the New Zealand market because high net migration is boosting spending and consumption,” he said.
He added this bodes well for the retail market and poses some exciting times in Auckland, in particular, “where there’s some scope for development of good quality shopping centres and high quality retail.”
According to a recent report from CBRE, New Zealand ranks 44th on the list of countries where retailers are currently looking to grow their presence.
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