Real estate beats shares

By ANNE GIBSON

Commercial property outperformed shares in the six months to September 30, a study shows. Bulk retail was the single best real estate investment, followed by Auckland industrial property, industrial property throughout the country, Wellington central-city office blocks, then retail real estate across the board.

The results come from the Property Council's investment performance index, which tracks 317 properties valued at more than $3 billion.



Bulk retail returned 5.34 per cent in six months - an income stream return of 4.87 per cent and a capital return of 0.46 per cent.

Over the same period, severely affected by the September 11 attacks, the NZSE-40 index returned minus 6.8 per cent, if dividends were reinvested. Nicole Humphries, the council's research manager, said the survey highlighted retail property's outstanding returns.

The survey showed commercial property fortunes improving, with CBD C-grade office buildings giving the highest return at 5.09 per cent for the six month period.

The survey examines 12 shopping centres and 34 bulk retail premises.