Posted on Aug 31, 2015
Once again we have seen a month with a substantial number of transactions. Currently we are seeing more sales/purchases than leases, but that is perhaps indicative of the fact that we have very few properties available for lease.
What is apparent is that the deals are being done by agents who come to us with a well thought out and reasoned proposal - whether buying or selling. The agent who merely sends a generic flyer for a fish and chip shop in Tokoroa ( or similar) simply goes into the resource file for our next quiz night - under the heading “which planet is he from?“
The new benchmark for industrial sales appears to be in the region of 6%. Whether that is sustainable we don’t know. But we do know that we have had to pay sub 6% to secure several properties, and we see others paying even lower yields. What does appear certain is that there is only one way rentals can go, which tends to support lower yields in the near term.
