Press Release – Bayleys
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. However, our latest auction results show that property yields are now also adjusting downwards again and this may well continue into the New Year,” Budd says.
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.