Buoyant property investors predict next year to be even better
Friday 2 January 2004
If this year was good, the next could well be better.
By The LandlordThat is the forecast of property prophets who see pent-up demand sparking yet another great year for commercial, retail and industrial property.
Although a modest interest rate increase and changes in the education industry might put a slight dent in the sector, owners and consultants are not forecasting any significant downturn.
An executive at New Zealand's largest landlord - Kiwi Income Property Trust, which controls about $900 million worth of property - is confident, particularly about prime office blocks.
Kiwi's commercial portfolio manager, Jon Lesquereux, reckons the two years will be almost the same but lower-quality office buildings, particularly in Auckland, might suffer.
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It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.