New Zealand’s effective management of the economy throughout the pandemic has paved the way for a multi-billion dollar capital gains proposition. At the very least, $3.8 billion in capital can be generated if the top NZ companies sold and leased back their occupied real estate. The bounty is ripe for the picking by anyone wise enough to take a look at the New Zealand property market. There are some 40 commercial/corporate entities from NZ and Australia who hold different land and property listings. The title on the deeds to the listings belongs to entities in the telecom, logistics, healthcare, and industrial sectors.

The opportunity has also fostered a market where NZ’s companies are generating a high ROI for investing in the country’s core businesses. The process is also freeing up and ferrying capital that was tied up so far in low-yielding assets.

Trade talk from the New Zealand housing market

Experts have narrowed down and identified the trend among corporate property owners to recycle low-yielding real estate in a low estate environment. The old-hat trick helps them accrue capital by re-funneling it into commercial property investment. This has led owner-occupiers across New Zealand to raise $1.2billion from sales and leaseback deals in the past five years. New Zealand housing market predictions short-term leasebacks are only going to be more frequent as more businesses resort to this trick to free tied-up capital.

One of the businesses belonging to the aforementioned sectors has leased back their Auckland properties for $178.3m in 2020’s third quarter. Another acquired a 17-hectare site in Otahuhu, in 2017, to develop a rail-served distribution hub; they recovered the acquisition investment and development costs in the present market and infused the funds into their business. All by tapping into the yield compression in the industrial sector. The capital gains have bankrolled some of these Australian enterprises into making new business acquisitions.

Experts are not surprised by this New Zealand housing market news, however. Flipping listed and unlisted, corporate and commercial property on-demand is a time-tested capital appreciation trick. You can both enjoy occupational control when you lease back and also fall back on liquid finance.