Auckland Tops in Industrial Capital Returns

4:01 PM Thursday July 24, 2014 True Commercial

Capital return in the industrial sector tends to be rather volatile, says Bayleys Research. Following the Global Financial Crisis (GFC), capital values fell for nine consecutive quarters from September 2008. However, capital appreciation returned to the sector in the final quarter of 2010 and in the year to December 2013 stood at 2.5 per cent.

 “Over the longer term Auckland based property has tended to provide higher capital returns than over the country as a whole as illustrated in the table below,” Bayleys Research says. “Whilst the average capital return from industrial property over the last 15 years has been 1.8 per cent, the return generated by Mount Wellington and East Tamaki located premises has been 2 per cent and 3.2 per cent respectively.