Monday, 14 December 2020, 9:28 am
A continuing contraction of investment property yields
and a good level of demand for well located tenanted and
vacant premises were features of Bayleys’ final
Total
Property auction for the year.
Bayleys’ Auckland
commercial and industrial director Lloyd Budd says the sale
of a variety of tenanted offerings at net rental income
returns of below or around five per cent confirm that yields
are continuing to track interest rates down.
“Bank
deposit rates have dropped significantly in recent months to
below one per cent which opened up a bigger yield gap with
commercial property returns than has existed for some time.