Offshore buyers are eyeing up a return to New Zealand's commercial property market, as the country gradually reopens its doors to the rest of the world.
An aerial view of a section of the Auckland CBD. Photo: Unsplash / Josiah Kemp
Pre-pandemic, investment house Forsyth Barr estimated about 60 percent of large commercial property deals involved offshore buyers - but they have been largely absent over the past two years.
But the recent announcement of Precinct Properties' partnership with Singaporean sovereign wealth fund GIC could signal the return of foreign investors in the high end commercial market.
Commercial real estate firm Colliers' national director for partnerships, research and communications, Chris Dibble, said interest was building again.
"Once they can get back into New Zealand we're ready to undertake that due diligence process and get things moving.
"We're already lining up the presentations and the conversations and [we've got a] pretty busy schedule ahead over the next couple of weeks, [which was] really a trigger on some of those recent discussions around that border opening up a little bit earlier than expected."
Dibble said there would initially be a transition phase where those with offshore funds start to look for good quality stock.
"That's hard to come by, it doesn't always appear. Even the local investors would love to be able to get their hands on some of the high quality stock.
"I think there's definitely opportunities for offshore investors, perhaps more so in the joint venture; that kind of structured deal, more so than just single purchase assets but I think there will be a mixture of both."