Investment Property In New Zealand

Report:

"We're witnessing a number of new investors coming into the market at present, some of whom are moving out of equities. With fixed-deposit rates moving down, we're also starting to see investors moving money out of the banks back into investment property."

Bayley says transactions are still being concluded in the middle segment of the market between $1 million and $10 million, but activity has slowed.

"As a consequence of the reduced amounts of finance available, we are seeing a re-emergence of the trade market where properties or other assets are exchanged to help make transactions happen. A number of our senior agents are revisiting their experiences with trades in the late 80s and early 90s to keep this sector of the market ticking over."

In a recent example of a trade deal, a property in Allens Rd, East Tamaki, has been exchanged as part of the sale of a larger industrial property in Settlement Rd in Papakura that is currently occupied by Croxley Stationary, but will be vacant on settlement.