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Asian appetite for NZ commercial investment opportunities

Jody Robb
Sat, 18 Oct 2014

Southeast Asian investor interest in the New Zealand commercial property market continues on an upward trajectory underpinned by our strong economic performance, stable government, and lifestyle/education opportunities according to Bayleys international director, Chris Bayley.

Mr Bayley recently returned from an extensive business trip to Asia where he and Bayleys’ Asian sales director, James Chan, attended the Mall China Shopping Centre conference in Beijing as special invitees and later attended several investment seminars across Asia.

“The Mall China conference attracted around 450 delegates who invest, develop, manage and construct shopping centres in China and abroad,” says Mr Bayley.

“We were asked to speak on the Australasian market and in particular, the benefits of investing in New Zealand commercial property.

“There was great interest expressed by attendees in New Zealand investment opportunities.”

While in Beijing, Mr Bayley and Mr Chan also connected with established Chinese investors who have interests in New Zealand property.

“They were particularly interested in Bayleys’ Investment New Zealand Portfolio, which was launched internationally in September, with commercial investments and vineyard properties attracting the most attention.”

Mr Chan travelled on to Hong Kong where he met with investor clients keen on quality long-term New Zealand investments and also developers looking for land development opportunities. 

Meanwhile, in Kuala Lumpur and Singapore, Mr Bayley and Harry Cheng from Bayleys’ Auckland city living team, along with representatives from ANZ Bank, Malcolm Pacific immigration advisors and Euroasia consulting firm, attended and addressed the New Zealand Migration and Investment Forums. These forums attracted high net worth individuals looking to either immigrate to or invest in New Zealand.

“All the attendees must have a net worth of $NZ2,500,000 and be willing to invest a minimum of $NZ1,500,000 into New Zealand,” Mr Bayley explains.

“This puts them into the ‘Investor 2’ immigration category. Commercial property is an approved investment under this classification. 

“The minimum $NZ1,500,000 investment requirement is over and beyond the equity they may have in a residential home in New Zealand.”

Mr Bayley says the feedback they got throughout their time in Beijing, Hong Kong, Kuala Lumpur and Singapore reinforced the appetite the Asian market has for investment and business opportunities in New Zealand.

“There is demand for well leased commercial investment property across all price ranges along with add-value development opportunities such as residential apartment complexes,” Mr Bayley says.

“There is also a high level of interest being expressed in any commercial opportunities that would support future business prospects in the export food and wine sector.

“There is an identified market for fresh and processed food products in Asia, which investors are keen to pursue from a New Zealand perspective.”

Mr Bayley says the educational opportunities available in New Zealand are driving much of the interest among those looking to establish businesses here.

“New Zealand universities are well-ranked internationally. Given the prohibitive cost of a quality education in China and the lifestyle benefits of New Zealand, high net worth investors from Asia are continuing to look for investment opportunities here.

Jody Robb writes for Bayleys Real Estate

Jody Robb
Sat, 18 Oct 2014
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Asian appetite for NZ commercial investment opportunities
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