New Zealand Commercial Property Market Good Buying

New Zealand continues to be an attractive place to buy commercial properties due to the continuing strength and stability of the New Zealand Economy. At the time of writing this (June 17 2007), New Zealand does not have a capital gains tax so commercial property investment is an attractive proposition for many.

Under $3Million Commercial Properties In Demand

Property investors will note yields vary depending on the location and the type of property. Yields of 6% to 8% are commonplace in the New Zealand commercial property market with a recent sale in the Wellington region showing a yield of 4.5%. Smaller commercial properties (under NZ$3m) are generally highly sought-after and locations like the Kapiti Coast, just north of Wellington, are particularly difficult to find with some recent sale prices setting record highs.

The May 10, 2007 commercial property auction conducted by Bayleys Commercial reflected strong investor confidence in the Wellington commercial and industrial market and a shortage of quality properties. Two central Wellington buildings have just sold to a local property investor for $33.8m.

Wellington Jewel In The New Zealand Property Crown

Although many overseas buyers have only ever heard of Auckland, Wellington is the jewel in the crown for many savvy property investors including New Zealand and Australian investors aware of the goods returns and soundness of the property market in the Wellington region.

Located at the geographic centre of New Zealand, the Wellington region is made up of four cities - Wellington city, Lower Hutt, Upper Hutt and Porirua - and the Kapiti Coast district. The Wellington region has a population of 460,400 – 11% of the total national population.

A recent survey of building occupancy carried out by commercial property company CB Richard Ellis revealed that the government sector occupies 500,000 square metres of Wellington central business district office space, equal to around 40% of the total office space in Wellington, the capital.

Commercial Property Hot On Fast Growing Kapiti Coast

As already mentioned the Kapiti Coast 45 minutes north of Wellington is HOT property and one of New Zealand's fastest growing areas. The Kapiti Coast is home to around 45,000 people and has a bouyant local economy. The area is popular because of its proximity to the capital city and its relaxed lifestyle options including one of the lower North Islands safest beaches. The Kapiti Coast is also within easy driving distance of the big employment and commercial centers like Porirua, Lower Hutt and Wellington cities.

Commercial property is tightly-held on the Kapiti Coast and properties are generally snapped up quickly if and when they come on the market.