FALLING lending rates in New Zealand and a positive reaction to the recent general election have injected confidence into the property market and renewed interest among investors in Southeast Asia.
Lenders lowered interest rates in November and December, firming investment yields and spurring buying activity. Rates stand between 8.25 and 10.95 per cent.
Last year was relatively quiet for Asian investment in New Zealand property but there were signs of renewed interest by December, mainly from Singapore. 'From an overseas point of view, there are no restrictions on investing in New Zealand property unless you are investing more than NZ$10 million (about HK$55 million),' said Mark Abbott, of Bayleys Real Estate.
'There are no restrictions on resale and no capital gains taxes. There are many expats whose contracts are due to expire in Hong Kong before the handover who are looking at New Zealand for residential investments, as well as commercial and industrial ones, as part of their retirement scheme.' Mr Abbott said the America's Cup in 2000 would also focus the international spotlight on Auckland. Office vacancy rates are continuing to fall in Auckland, Wellington and Christchurch.
In its latest six monthly market report, independent valuation company Darroch has forecast a rise in premium central business district (CBD) office rents in Wellington of 54 per cent in the next five years.
Similar rental increases are forecast for Auckland, where the vacancy rate for prime office space stands at about 5 per cent.
The inner city apartment sector, the newest property market in the country, has been one of the best performing in recent years, sustained by strong leasing demand.