Top Ten Predictions 2016

Press Release – Colliers International In our 2016 predictions for New Zealands property market we discuss views on market demand, politics, planning, emerging investor groups, how the office, retail and industrial sectors will fair and our opinions on the ever popular residential, hotel …Top Ten Predictions 2016 In our 2016 predictions for New Zealand’s property market we discuss views on market demand, politics, planning, emerging investor groups, how the office, retail and industrial sectors will fair and our opinions on the ever popular residential, hotel and agribusiness and rural sectors. 1. Investment demand increases Post-GFC global economic and financial management by Reserve Bank governors has driven down cash and bond yields, propelling property to the forefront of decision making for ‘yield hungry’ investors. The low inflation, low interest rate environment with buoyant business activity has produced a ‘snowball effect’ on value growth that has picked up speed and will not slow down in 2016. Comment by Gareth Fraser, Director, Investment Sales: Demand for commercial investments and add-value opportunities continues to accelerate across Auckland. We are seeing unprecedented yields being achieved for investment grade properties in the commercial, industrial and retail sectors. Our auction clearance rate at 73% is at its highest level ever. Commercial investors continue to compete for properties and chase yield. This trend will only continue for 2016 given historically low interest rates. 2. Politics and planning...

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