Asian investors focus on New Zealand

Hongkongers like New Zealand. Many choose to educate their children in its perceived pristine environment, while others will holiday, or even relocate, to the country's wide open spaces that are so far removed from their own urban existence.

For property investment, though, New Zealand has flown under the radar, with most of the offshore interest being channeled into its neighbour, Australia. And yet New Zealand too, offers a stable and corruption-free political and investment climate, and an uncomplicated land title system. Like Australia, it also weathered the global financial crisis better than many economies.

As Belgium-based Qrops (Qualifying Recognised Overseas Pension Scheme) Adviser noted, New Zealand's further incentives include no stamp duty, no capital gains tax, and relatively high rental returns, especially for commercial property. 'For instance, for the same investment cash, the yield in Hong Kong is about 3 per cent, but 7 to 10 per cent in New Zealand,' said Qrops' Stuart Wilson.

To further show it is serious about welcoming foreign investment, the government no longer requires Overseas Investment Commission screening for offshore purchases of commercial property valued at under NZ$100 million (HK$557 million) - thus opening the doors to more wealthy private investors.

For these reasons, Wilson added, New Zealand is finally ringing a bell with investors from Asia and elsewhere. Auckland, the nation's capital, is proving the centre of their attention.

Auckland-based David Bayley, executive director of Bayleys Real Estate, has been courting Southeast Asian investment for years, with billions of dollars in sales as a result. In today's market, he said, New Zealand commercial real estate is viewed as a stable market offering long-term growth opportunities, especially among buyers from Singapore and Hong Kong.