Snapshot - City & Fringe Office Unit Titles
Apr 5, 2016
The second snapshot for 2016 focuses on the recent resurgence of unit titled office sales in city and city fringe locations. With commercial property prices increasing, many of the smaller investors entering the market must now consider unit title investments. The increased activity in the Unit Titles market is also due to the low interest rate environment, which for owner occupiers means the cost of purchasing and servicing a mortgage has become more attractive than rental obligations. Consequently sales were on the rise in 2015 and with strengthening prices, as evidenced by a number of sales completed by the City and Fringe Team.
At present we are also seeing a willingness from passive investors to consider unit titled properties due to the yields many fully leased properties are offering. The City and Fringe Team have recently sold a number of leased unit titled properties to this type of purchaser with many representing yields around 7% net.
Below is a selection of unit titled properties sold in the city and fringe in the last year completed by the team:
For more information on any of these sales, please feel free to contact Andrew Wallace or one of the team.
Market Commentary on 29/03/2016: Apartment builds rocket ahead of stand-alone house in Auckland