New Zealand Property Hot in South East Asia

New Zealand company Bayley’s Real Estate is increasing its presence in key South-East Asian countries as interest in New Zealand property increases among Asian overseas property  investors.

According to the New Zealand Herald Bayley’s are focusing on China, Hong Kong and Singapore investors and a promoting a mixture of more expensive New Zealand property including commercial, industrial, rural and coastal listings.

The paper suggests that potential investors are being driven by:

“They are classic counter-cyclical investors and they perceive there are good opportunities in the New Zealand market. The falls in the value of the New Zealand dollar and in interest rates have also been factors, along with attractive property prices and yields”

They consider New Zealand to be a “safe haven” which displays less volatility than many other comparable property markets. Asians views New Zealand as a country where they are unlikely to lose their capital.

Auckland CBD Property - Hot in China?

A typical recent sale to an overseas investor is described as:
a three-level character building in Victoria St, in Auckland’s CBD, which Chan recently sold to a Chinese investor for $3.175 million at a 7.8 per cent yield.

The 266sq m building is leased to the ASB Bank until 2012, with rights of renewal through until 2024.

Bayley’s target market is seen as high net worth individuals in Shanghai and Beijing particularly. The recent New Zealand China Free Trade Agreement is also seen as an important factor in the growth of Chinese investment in New Zealand property.
Complete story here