NZ pension funds tighten property purse, as Australia widens gap
NZ Super and KiwiSaver funds urged to increase property allocations, to promote sector liquidity.
Brent Melville
Fri, 31 May 2024
Hot Topic
Hawke’s Bay
Key points
- What’s at stake: New Zealand superannuation money is at record levels, but investment into commercial property has actually declined as an asset allocation over the past 10 years. More investment into direct real estate would bring greater liquidity to the sector.
- Background: Smaller KiwiSaver funds tend to sidestep real estate more than bigger funds, while Australians are sold on the recession-proof nature of bricks and mortar investment.
- Main players: NZ Super Fund, Fisher Funds, Simplicity, CBRE, Zoltan Moricz, AustralianSuper.
New Zealand pension fund money remains scarce when it comes to real estate investment, with about 5% of funds under management targeted at property as an asset class.
That's well under the average 7.3% allocation of Australian super fund providers.
Research by commercial realtor CBRE shows that
Want to read more? It's easy.
Choose your best value subscription option
Individual
Group membership
NBR Marketplace
Yearly Premium Online Subscription
NZ$499.00 / yearly
Monthly Premium Online Subscription
NZ$44.95 / monthly
Smartphone Only Subscription
NZ$24.95 / monthly
Premium Group Membership 10 Users
NZ$350+GST / monthly
$35 per user - Pay by monthly credit card debitPremium Group Membership 20 Users
NZ$600+GST / monthly
$30 per user - Pay by monthly credit card debitPremium Group Membership 50 Users
NZ$1250+GST / monthly
$25 per user - Pay by monthly credit card debitPremium Group Membership 100 Users
NZ$1875+GST / monthly
$18.75 per user - Pay by monthly credit card debitYearly Premium Online Subscription + NBR Marketplace
NZ$499.00 / yearly
Already have an account? Login
Brent Melville
Fri, 31 May 2024
Contact the Writer: bmelville@nbr.co.nz
News tip? Question? Typo? Let us know: editor@nbr.co.nz
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Key points
- What’s at stake: New Zealand superannuation money is at record levels, but investment into commercial property has actually declined as an asset allocation over the past 10 years. More investment into direct real estate would bring greater liquidity to the sector.
- Background: Smaller KiwiSaver funds tend to sidestep real estate more than bigger funds, while Australians are sold on the recession-proof nature of bricks and mortar investment.
- Main players: NZ Super Fund, Fisher Funds, Simplicity, CBRE, Zoltan Moricz, AustralianSuper.
NZ pension funds tighten property purse, as Australia widens gap
Property,
104306