Paul Thornill on his published article in realcommercial described the reputation of New Zealand's commercial property as "the shaky isles." However, his description was pertaining to the previous standing of the country's commercial real estate industry. For according to most experts, New Zealand's commercial real estate is expected to boom due to the investments poured in coming from the Chinese market. And in relevance to the emerging commercial real estate condition of New Zealand, outline below are some important facts to about the said phenomenon.
Less Buying Restrictions
According to the report of unconditional, "it is expected that savvy Chinese individuals and businesses drawn to New Zealand will pour an incredible US$10.9 billion into the New Zealand commercial and residential real estate markets." The reason behind is because of the Chinese government's removal of certain purchasing restrictions with regards to investing properties overseas. Qualified Domestic Individual Investor (QDII2) programme to be implemented by the Chinese government would soon give more muscle to Chinese investors as they decide to purchase land in New Zealand.
On Being Welcoming
In connection to the said rise of Chinese investors, people within the real estate industry should be more welcoming, both on small scale and large scale investors. Certain innovations should be made according to the said report. People within the real estate industry of New Zealand should at least "learn to communicate in Chinese, to lobbying government to make the country more appealing to Chinese investors. It has been recommended by experts in the field that, to ensure that US$10.9 billion floods into the New Zealand economy rather than being diverted and invested elsewhere."
Possible Impact
With the removal of certain restriction New Zealand could definitely partake with the flow of cash towards economic benefit. However some factions are not that convinced of the said emerging business. According to some experts, "New Zealand's infrastructure simply isn't set up for such huge property focus and development, nor is it in a position to change that in the immediate future." They are also foreseeing some negative impacts of huge property purchases to be made by Chinese investors, that it might be difficult for some locals to find an area of their own.
What do you think about the future of New Zealand's commercial industry? Feel free to share and comment below.
