Where we talk about Commercail Real Estate
September 2, 2011 Leave a Comment
Finally someone has listened to the people of Christchurch and has driven around the Red Zone with a camera on his latter. One must ask why CERA are unable, or unwilling to do this but if you come from overseas you are given an escorted tour.
August 22, 2011 Leave a Comment
A new gauge of the commercial property market shows the sector is softening, earning an across-the-board annual return of 5.9 per cent.
The Property Council of New Zealand/IPD commercial property index has been launched to give investors a measure of performance across the office, retail and industrial property sectors.
It takes data from 14 participants, representing 21 funds or portfolios with a combined asset value of $9.6 billion.
Overall, commercial property returned 5.9 per cent. For the year to June, the return on income was 8.5 per cent and the loss in capital growth 2.4 per cent.
The council said the result was slightly lower compared with the previous quarter (6.1 per cent) and well down against a long-run return rate of 10 per cent.
“The latest results suggest that the commercial property market displays a lack of strength,” said Anthony De Francesco, of IPD Australia and New Zealand.
Source: Businessday.co.nz
August 22, 2011 Leave a Comment
Four units in the Workstation55 business park in the Christchurch suburb of Addington are going to auction next month.
The park was developed by Auckland’s Latitude Group, which still owns most of the complex but has sold off some individual titles.
Read the full article > http://www.stuff.co.nz/the-press/business/your-property/5345879/Business-park-units-up-for-grabs
August 18, 2011 Leave a Comment
Lane Neave Lawyers look at two particular issues arising for Christchurch business owners affected by the recent earthquakes to the extent of cover available under their business interruption insurance policies.
The first is the extent to which insurers are entitled to make deductions from the claim on the basis that the losses suffered are caused by depopulation, and so are not insured.
The second issue is whether cover may be restricted to the cover under a policy extension (such as an extension for acts of civil authorities or prevention of access).
Source: Lane Neave Lawyers
July 28, 2011 Leave a Comment
Two female real estate agents came to blows over the sale of an apartment in a fight that left both with minor injuries – and a fine.
The catfight erupted in front of onlookers at an inner-Auckland apartment that both agents – Hulan (Wendy) Feng of City Sales and Soon (Fiona) Lee of LJ Hooker Ponsonby – had been trying to sell.
One industry insider said he wasn’t surprised two female agents were involved but another said the behaviour was ridiculous.
A Real Estate Agents Disciplinary Tribunal found both agents guilty of disgraceful conduct and fined them $600 each.
It described what unfolded: “Ms Lee was at 76 Albert St showing a potential buyer around apartment 20F. Ms Feng arrived at the property and words were exchanged to the effect that Ms Feng considered the apartment to have been sold and that Ms Lee should therefore not be showing it.
“A physical confrontation between the defendants ensued. Each of the defendants alleged she was assaulted by the other but it is not necessary for the tribunal to make any findings about that because both defendants through counsel admitted they were engaged as alleged in a physical fight.”
July 5, 2011 Leave a Comment
The attached document is an easy read that answers some of the following questions;
June 17, 2011 Leave a Comment
‘Perfect storm’ for overseas investment in New Zealand business and real estate
New Zealand’s safe food-chain supply, a pending multi-billion dollar investment by the Chinese Government, and an overheated Australian property market are three key factors behind a rise in demand for New Zealand real estate assets by off-shore investors.
The ‘perfect storm’ of global social and economic conditions has arisen – totally independent from each other – from three separate global locations, and comes at a time when New Zealanders are becoming increasingly open to potential sale of domestic assets and land on the international market.
In response to requests from vendors to take Kiwi property marketing offshore, leading New Zealand real estate company Bayleys is compiling a portfolio of commercial premises, businesses, residential homes, and primary production land for sale to take on an extensive roadshow to South-East Asia, Europe and the UK.
Properties and businesses already participating in the Bayleys Global portfolio include tourism and hospitality ventures in Taranaki, the West Coast, and Central Otago, a farm in North Canterbury, two vineyards in Marlborough, a retirement village in Counties just south of Auckland, and residential homes in Auckland, Queenstown, Taranaki and Northland.
Bayleys principal David Bayley said the company had traditionally focused on UK immigrants to spearhead its Northern Hemisphere marketing activity. However, events of the past three months had created a new set of dynamics and opportunities – with demand following suit.
He said, ‘new generation’ factors were now underpinning the increasing interest in New Zealand real estate and businesses. Among those factors were:
Global financial Bible, The Economist, last month identifying the Australian residential property market as the most overvalued in the world – with the bubble estimated to be overinflated to the tune of 56 percent. On the back of a continuing iron-and steel mining and production boom across the Tasman, property market commentators have been tracking double-digit growth in residential and commercial property values over the past three years while the rest of the world, apart from China, has been in recession. With Australian residential and commercial property market values benefitting from nearby Asian investment, real estate analysts believe it is only a matter of time until large scale profit-taking sell-offs commence in Australia… and the resulting funds begin heading to New Zealand to take advantage of a favourable exchange rate. China’s enormous sovereign wealth fund, the China Investment Corporation, setting aside NZ$6 billion of its massive foreign exchange reserves to invest in New Zealand assets – including commercial buildings, companies and primary productions units such as farms and vineyards. Growing safe food-chain supply concerns following the suspected irradiation of primary produce from Northern Japan after the March earthquake – which resulted in the World Health Organisation placing meat, leafy vegetables, eggs and milk produced in the region on a ‘danger list’.
Those safe food-chain supply concerns were further exacerbated this month with an outbreak of the killer e-coli virus across Europe which was traced back to vegetables contaminated by polluted water. Both instances dovetail behind the 2008 Sanlu melamine milk powder scandal in China, which saw some 10,000 tonnes of infant milk powder recalled off supermarket shelves.
Mr Bayley said each of the demand factors on their own were significant.
“Combined however, they are enormous,” he said.
“New Zealand’s challenge now is to balance a controlled exchange of farms, commercial properties, home and businesses ownership in such a way that the best interests of the country are retained in the long-term, while the multi-billion investment opportunities we are now facing are used to continue in assisting to lifting New Zealand out of recession.
“Controls and measures for this are contained within Overseas Investment Office guidelines.
“In full compliance with OIO guidelines, properties featuring in our international portfolio are being simultaneously marketed extensively throughout New Zealand – giving New Zealanders every equal opportunity to buy.”
Mr Bayley said the Government’s internationalist policy of seeking investment in the New Zealand economy would assist in the company’s marketing drive. Properties for the international marketing campaign are currently being signed up – with some 26 already confirmed.
Bayleys’ international roadshow across immigration expo’s and property investment seminars begins in Zurich, Switzerland, on July 6 before taking on dates Leeds, London and Manchester. Company principal David Bayley is handling the South-East Asian section of the Bayleys Global campaign – with a promotional trip to Shanghai, Guangzhou, Singapore and Hong Kong scheduled for August.
Source: Press Release – Bayleys
Bob Jones doubts if Christchurch will be rebuilt!
September 28, 2011 Leave a Comment
It is time to face the reality that the Christchurch central business district (CBD) cannot be rebuilt.
Cities have many components, such as libraries, art galleries, council offices, theatres, halls and other public facilities. These comprise the indulgent element, paid for from the public purse. But they cannot exist in isolation and alone constitute a city. Rather, they emanate from the steady organic growth of a city’s commercial activities in the form of shops and offices.
Prior to the earthquakes, Christchurch’s CBD retail heart was already in trouble, with empty shops abounding, while those remaining lived off the office workers, now gone. This was a direct consequence of the construction of large suburban shopping centres, which killed off the CBD as a retail location, just as has occurred in many other cities throughout the Western World. Examples in New Zealand include Lower Hutt and now, increasingly, Hamilton.
Read the full article at: http://www.stuff.co.nz/business/rebuilding-christchurch/5696381/Bob-Jones-says-ChCh-CBD-cannot-be-rebuilt
Filed under Industry Commentary Tagged with Bob Jones, Christchurch Rebuild