Yes, according to the latest Global Real Estate Transparency Index (GRETI) New Zealand ranks 1st for its Transaction Process out of 97 markets worldwide. GRETI is a joint initiative with LaSalle Investment Management. The Index is a unique survey updated every two years and the 2012 edition represents the seventh edition. The Index is widely recognised as the benchmark of real estate transparency.
So, what are some of the factors that separate New Zealand from the other markets?
In terms of the actual sales transaction, New Zealand’s quality and availability of pre-sale information, fairness and confidentiality of the bidding process and professional and ethical standards of the property agents are considered second to none.
These three factors are increasingly important in a world that is coming to grips with the necessity of transparency for all transactions.
In New Zealand there is a variety of sources to obtain property sales information through government, corporate and private avenues. This is similar to many developed nations. However, one factor that separates New Zealand is the extended time period and robustness of continuous data recorded across most forms of commercial and residential real estate.
An example of this type of data provision consolidated into one easy format is Jones Lang LaSalle’s Real Estate Intelligence Service (REIS). This comprehensive market research document provides physical and financial metrics over the last two decades. The access to this type of information in tandem with complementary market research and bespoke consultancy services enables investors to make a well-informed transaction decision.
As the GRETI identifies, adding to the transparency of the transaction process is the professional and ethical standards of property agents. Their actions, up-skilling and monitoring are continually assessed by the Real Estate Agents Authority (REAA). There are also other official bodies which enable investors to bid for any asset knowing that the process is fair and confidential.
The global flow of capital is progressively reaching destinations from one side of the world to the other searching for prosperous and transparent markets. We are increasingly seeing global investors investigate and purchase assets in New Zealand. There was approximately NZ$290m transactions in 2010 from foreign investors compared to NZ$550m in 2011. The latest survey findings add support and are a testament to New Zealand’s attractiveness as an investment destination.
For more information on GRETI the REIS and how Jones Lang LaSalle can assist with your next transaction in New Zealand visit us at www.joneslanglasalle.co.nz.
About the author
Chris Dibble is Associate Director of Research and Consulting for Jones Lang LaSalle in New Zealand.