Auckland, a major city in the north of New Zealand's North Island, is now also one of the major spots in the world for commercial real estate.
According to Stuff, international property consultancy JLL declares that Auckland has placed second in its most recent survey on "investment intensity index" for the Asia-Pacific region. Jones Lang LaSalle, JLL, is a financial and professional consultancy firm specializing in commercial real estate.
The said survey was conducted to measure the extent or direct real estate investment and compare it to the economic size of the city within a span of three years. Sydney was first on the list. The other eight are: Melbourne, Brisbane, Tokyo, Hong Kong,Taipei, Singapore, Adelaide, Perth (descending order)
Tokyo, one of the world's biggest commercial real estate markets together with New York and London, place fifth on the survey.
According to Stuff, head of research Justin Kean of JLL New Zealand remarked that Auckland is performing at a higher level than normally expected to entice real estate investors. He said, "Some reasons for our appeal are our few government restrictions for foreigners buying assets and robust office pipeline that provides opportunities to buy grade-A assets."
The transparency of New Zealand's real estate market is another attraction to the investors. According to Stuff, investors are very much drawn to the availability of good market data, fair transaction process, and high standards of regulation, accounting and corporate governance, which is a common practice in New Zealand's commercial property industry.
In terms of tangible attractions, Auckland's prime office buildings are said to yield between seven percent and eight percent.
According to Kean, the Trans-Pacific Partnership Agreement would improve New Zealand's relations with other regions and associate it with more stakeholders.
The survey also revealed that US$1.7 billion was being invested into Auckland's commercial property market each year, making it 12th in rank in terms of investment volumes.
