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PROJECT TOPIC: A COMPARATIVE ANALYSIS OF RESIDENTIAL AND RETAIL COMMERCIAL PROPERTY INVESTMENTS PERFORMANCE IN AUCKLAND, NEW ZEALAND

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AbstractResidential property is one of the basic human needs; hence real estate investments are consistently faced with the types of property and the place to invest because property values are not uniformly distributed in cities. Auckland commercial property is a physical asset class that forms an important part of the capital market universe. On available data, the extent and composition of investment grade commercial property and associated property investment products can be measured and compared to the wider New Zealand investment market. As at December 2014, the estimated New Zealand institutional grade commercial property stock was NZ $681 billion. The size of the core property investment market (office, retail and industrial) is ND$280 billion of which approximately ND$195 billion (70%) is owned by New Zealand Institutions. This thesis focuses on the A Comparative Analysis of Residential and Retail Commercial Property Investments Performance in Auckland, New Zealand. It conducts a comparative analysis of the performance of residential and retail commercial property investments within the period of year 2006 and 2016; focusing on average return, risk adjusted return, income growth and capital appreciation. The results showed that retail commercial property investments performed better than residential property investments with a mean annual return of 14.2% as against 11.8%. In addition, commercial property investments performed better in terms of risk adjusted return with sharp index of 1.11 as against 0.55 for residential property investments. In terms of income and capital growth, the performance of commercial property investments was also higher during the period of measurement. The study concluded that while both residential and commercial property investments performed well with positive mean returns and risk adjusted returns, commercial property outperformed residential property investments.



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