Property on roll around the country

By ANNE GIBSON

"Outstanding results" were identified in the latest Property Council performance index, says the organisation's research chief.

Alan McMahon, the council's research committee chairman, said the index showed a 27 per cent increase in the performance of real estate investments in a year.

"The most satisfying aspect is that every sector in every location is doing well."

The 12 months to September show a total return on commercial property of 11.04 per cent, compared with 8.67 per cent for the previous period.

Strong performance would continue despite a recovery in the equities market and rising interest rates, McMahon said.

The index is the main benchmark of commercial property investment returns. It measures the performance of 285 properties worth more than $3.89 billion, involving 18 owners and managers.

CBD offices returned 10.2 per cent (7.04 per cent last year), Auckland CBD offices returned 8.39 per cent (5.62 per cent), Wellington CBD offices were 13.52 per cent (9.78 per cent), non-CBD offices returned 10.65 per cent (5.76 per cent), Auckland non-CBD offices were 9.95 per cent (6.23 per cent), industrial nationally was 11.37 per cent (10.59 per cent), Auckland industrial was 11.27 per cent (10.45 per cent), Christchurch industrial was 14.33 per cent (10.35 per cent), retail nationally was 12.48 per cent (9.97 per cent), shopping centres nationally 11.40 per cent (9.37 per cent), bulk retail nationally 16.19 per cent (11.76 per cent).