Commercial Yield

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<p>Net rental yields were mostly under 5% at Bayleys' recent auction of Auckland commercial properties.</p>
<p>The net yields achieved ranged from 6.11% on a medical clinic in Penrose that fetched $1,065,000, to just 2.66% on a $3.61 million house in Takapuna that had been converted to <a href="https://www.propertyobserver.com.au/https://www.bayleys.co.nz/1501322" target="_blank">legal offices</a> (pictured above).</p>
<p>The Bob Dey Property Report suggested it had more intensive development potential.</p>
<p>Most of the properties sold on yields between 4% and 5%, with prices ranging from $1,065,000 to $4.04 million.</p>
<p>The yields suggest commercial properties in Auckland can still be purchased for about the same price or less than the average price of a house in the region, but the commercial properties are likely to be providing investors with significantly better returns.</p>
<p>Other recent commercial property sales around New Zealand include a hair dressing salon in Hawkes Bay which sold for $815,000 providing a net yield of 5.61%.</p>
<p>A large industrial building in New Plymouth sold for $2.6 million providing its new owners with a net yield of 7.65%.</p>
<p>Another recent sale was 303-305 Great South Road, Papakura, an Asian supermarket a mixed use zoned site for $3,440,000 at a 4.73% yield. It was declared on the market at $2,800,000. </p>
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Auckland commercial property yields sitting under 5%

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<p><span>High yields and exchange rates lured record overseas investors to to the commercial property market in calendar 2015 according to the Asia Pacific Investment Quarterly Q4, 2015 from Savills. </span></p>
<p><span>The report found approximately A$30 billion of national commercial property sales throughout the year with around A$17.2 billion worth of office transactions for the year to December 2015, up 3 percent from the previous year.</span></p>
<p><span>Savills recorded approximately A$4.8 billion worth of industrial transactions in the 12 months to December 2015, down from A$5.55 billion </span></p>
<p><span>Foreign investors purchased 36 percent of all industrial property sales and 26 percent of all commercial retail stock sold. </span><span style="line-height: 1.3em;"> </span></p>
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Commercial Yield

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