As residential property returns dwindle commercial property will rise

A survey of investors by independent economist Tony Alexander shows the most favoured assets for portfolio additions are shares either directly or through managed funds, exchange-traded funds (ETFs) and commercial property.

For the 15% of people looking to invest this coming year in commercial property, 49% will look for industrial or warehouse premises.

The next most favoured, and well back, is office accommodation at 9% of investors, alongside 9% who will look for retirement/rest homes.

“The latter is a growing sector as the population ages, and it is notable that advertising of such facilities looks to have increased in recent times along with construction of new premises according to data from Statistics New Zealand,” says Alexander.