Stonebridge Property Group and Whillans Realty Group are hosting a forum on property  investment in New Zealand, in association with PwC, Bell Gully and UBS. 

Commercial real estate in NZ is approaching the bottom of the cycle. This presents a unique  opportunity to purchase assets at attractive yields and favourable pricing levels.  

The forum will include discussions on corporate structuring, tax advice, and economic comparisons between the two countries.  

The New Zealand Reserve Bank’s May 22nd announcement to hold the OCR at 5.5%, marks 12  months of no change in interest rates. Inflation is falling and long-term bond yields are  beginning to ease, providing speculation that the next movement in rates will be downwards.  

The Reserve Bank of Australia has indicated further interest rate increases may be required due to sticky inflation. This hawkish stance indicates a decline in rates is unlikely to be considered until the second half of 2025. 

Whillans Realty Group, Managing Director Bruce Whillans says New Zealand’s early move to  raise rates has placed downward pressure on property values and liquidity for close to three  years.  

“Listed REITs have been trading significantly below NTA, impacting their ability to raise capital,  and forcing some to look at asset disposals to maintain debt covenants. Syndicators and local  fund managers have been severely affected by floating rates and also need to offload assets to  rebalance their portfolios.”  

Whillans adds that many domestic purchasers in New Zealand are capital constrained due to  their interest payments and existing portfolios. This has created the unique window of  opportunity for Australian buyers to take advantage of New Zealand’s property cycle. 

Stonebridge Property Group, National Partner, Philip Gartland says given the pricing disconnect  between vendors and purchasers in Australia, and the hiatus this has caused in transaction  volumes, we like the logic of investors looking to New Zealand as a genuine investment  destination.  

“With minimal transaction costs and a favourable tax regime for property investment, together  with a population growth landscape not dissimilar to Australia, and an interest rate cycle that is  further advanced, investors should certainly be assessing the opportunities emerging there”.

Whillans Realty Group are based in Auckland. They are a market leader specialising in large  scale transactions, having completed over $5 billion in sales since they established in 2010. 

To maximise this timing in market dynamics, Whillans have partnered with Stonebridge Property  Group to work together on Trans-Tasman investment opportunities.  

Stonebridge Property Group are a Partner led specialist commercial real estate agency, founded  in 2008 and with offices in Sydney, Melbourne and Brisbane. 

The Trans-Tasman Property Investment Forum will take place on Wednesday 19th June at 4pm at in the Hermitage Room at The InterContinental Sydney - Level 1, 117 Macquarie Street, Sydney. 

To enquire, please email [email protected].