AUCKLAND COMMERCIAL PROPERTY MARKET SURGES AHEAD OF NEW YORK AND SINGAPORE
Wednesday June 24th, 2015
Auckland has one of the most active commercial property investment markets in the world, according to an index of global commercial property investment trends by international real estate company JLL.
Auckland was ranked seventh in the world in JLL's latest City Investment Index, which measures the proportion of institutional investment grade commercial property sales (in NZ that's sales above $5 million) in a city over a three year period, relative to its overall economic activity.
That puts Auckland ahead of real estate powerhouses such as new York, Singapore, Frankfurt, San Francisco, Paris and Tokyo, but behind London, Munich, Oslo, Stockholm Copenhagen and Sydney.
Auckland has moved up six places since last year's survey, following a surge in commercial property investment activity.
The Index provides a measure of commercial real estate market activity and highlights those cities that are punching above their weight in terms of attracting real estate investment, JLL said.
""Auckland's competitive advantage is its high quality commercial stock that is encouraging international real estate interest," JLL New Zealand managing director Nick Hargreaves said.
This is Auckland's best ever performance in the JLL study and a key indicator that we are beginning to reach the global forefront in terms of our transparent and liquid real estate market."
JLL new Zealand's head of research, Justin Kean, said the Index was much like a free float measure of a stock market because it indicated both the availability of quality commercial property stock and the propensity of investors to buy and sell based on the investment outlook.
"For Auckland to beat New York, Singapore and several major Chinese markets underlines the attractiveness of the location," Kean said.