Scott O’Neill and Mina O’Neill are investing in New Zealand. Credit: Supplied Rethink, Getty <\/p>\n
Australian property investors <\/a>are starting to look beyond their own backyard \u2014 and for good reason. With local markets strained by affordability pressures, rising interest rates<\/a>, and softening yields, smart investors are increasingly thinking global in search of stronger returns, diversification, and long-term security.<\/p>\n New Zealand is one such market attracting attention but, as with any cross-border investment, it carries both opportunities and risks that need to be weighed carefully. It\u2019s a strategy I\u2019ve embraced personally and professionally.<\/p>\n After building a commercial and residential portfolio now valued at $153 million<\/a>, my wife Mina and I made the decision to expand our footprint across the Tasman.<\/p>\n For us, New Zealand wasn\u2019t just a logical next move, it was a calculated step in a global investment strategy driven by timing, value, and risk management.<\/p>\n RELATED<\/p>\n Our acquisitions team in New Zealand uncovered a strong pipeline of off-market opportunities, many offering net yields above 6 per cent and long-term tenancies secured by reputable brands and essential services.<\/p>\n That kind of value is becoming harder to find in Australia.<\/p>\n Since mid-2024, the Reserve Bank of New Zealand (RBNZ) has cut its Official Cash Rate (OCR) by 225 basis points, bringing it down to 3.25 per cent as of May 28, 2025, with expectations it may dip below 3 per cent by year-end<\/a>.<\/p>\n Lower rates can boost property values by improving affordability and investor confidence.<\/p>\n Over a dozen regions, including parts of Auckland and Wellington, remain more than 20 per cent below their 2022 peaks<\/a>, offering a potential entry point for value-driven buyers.<\/p>\n Commercial real estate group CBRE<\/a> projects prime commercial yields could ease from 6.85 per cent (mid-2024) to around 6.50 per cent by December 2025 as liquidity improves (CBRE).<\/p>\n As Australian property prices<\/a> have surged well beyond 10\u201312 times average incomes, the fundamentals have become increasingly difficult to justify.<\/p>\n We found New Zealand offered a more rational market; less speculative, more value-aligned, and still underpinned by strong economic fundamentals.<\/p>\n From industrial and retail properties to office spaces in high-demand corridors, New Zealand\u2019s commercial property sector is diverse and resilient.<\/p>\n And with fewer buyers in the market, there\u2019s greater scope for negotiation, off-market deals, and value creation.<\/p>\n While the market shows signs of recovery, timing the bottom is never an exact science.<\/p>\n Economic conditions could remain subdued for longer than expected, and factors such as global market volatility, changes in interest rates<\/a>, or shifting tenant demand may impact returns.<\/p>\n New Zealand\u2019s smaller population and economy mean that recoveries, particularly in regional areas, can take longer than in larger economies.<\/p>\n Results can vary significantly between regions.<\/p>\n Infrastructure upgrades or delays, shifting population trends, and changes in local industries can materially influence performance.<\/p>\n Investors should understand local economic drivers and not rely solely on current yields or lease terms when assessing a property\u2019s long-term viability.<\/p>\n Interest rate risk is another factor; while OCR cuts are supporting values now, inflationary pressures or external shocks could see rates rise again.<\/p>\n Legal and regulatory considerations also apply.<\/p>\n While there is no ban on foreign commercial property ownership and New Zealand shares many legal and financial frameworks with Australia, residential and mixed-use properties may fall under the Overseas Investment Act.<\/p>\n \u201cSensitive land\u201d classifications can add complexity, so obtaining legal and tax advice before purchase is essential.<\/p>\n For Australian investors, New Zealand offers a relatively streamlined entry point: no ban on foreign commercial property, similar contract law, and fewer bureaucratic hurdles than many other countries.<\/p>\n The commercial property market is diverse, spanning industrial, retail, and office assets.<\/p>\n Larger acquisitions, often $10 million or more, can face less competition from other buyers, but smaller properties in the $700,000 to $2 million range remain accessible to individuals and family investors.<\/p>\n At entry level, lease terms can sometimes be shorter, which adds risk and requires closer due diligence.<\/p>\n Sentiment also plays a role.<\/p>\n Even when fundamentals are stable, shifts in buyer or seller confidence can accelerate growth in a rising market or prolong downturns.<\/p>\n Monitoring sentiment alongside economic data can be critical for decision-making.<\/p>\n Regardless of budget, building market knowledge early can help investors act decisively when the right opportunity arises.<\/p>\n Understanding tenant quality, building condition, and location fundamentals is just as important as analysing yield.<\/p>\n Data from industry sources such as the QV House Price Index<\/a> (QV) shows the housing market is stabilising as sentiment cautiously lifts.<\/p>\n While commercial markets can behave differently, the underlying drivers, population trends, business activity, and infrastructure investment, are worth tracking.<\/p>\n The bottom line?<\/p>\n New Zealand\u2019s commercial property market offers potential value and diversification benefits for Australian investors, but it\u2019s not without risk.<\/p>\n Market conditions, regulatory requirements, and regional variations must be considered alongside any potential upside.<\/p>\n For those prepared to do the research and seek professional advice, New Zealand can be a gateway to thinking beyond domestic borders but as with all investments, informed caution is key.<\/p>\n Scott O\u2019Neill<\/a> is a prominent Australian property investor featured in AFR\u2019s Young Rich List<\/a> three years in a row. He is an entrepreneur and Founder & CEO of Rethink Group<\/a> a premium property investment group.<\/p>\n The information provided on this website is general in nature only and does not constitute financial advice. Before acting on any information, you should consider your personal objectives, financial situation or needs.<\/p>\n","protected":false},"excerpt":{"rendered":"Scott O’Neill and Mina O’Neill are investing in New Zealand. Credit: Supplied Rethink, Getty Australian property investors are…\n","protected":false},"author":2,"featured_media":108336,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,99,66221,77594,77593,1736,77591,77590,77592],"class_list":["post-108335","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-au","tag-australia","tag-business","tag-commercial-real-estate","tag-global-investment-strategy","tag-mina-oneill","tag-new-zealand","tag-property-investors","tag-reserve-bank-of-new-zealand","tag-scott-oneill"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/108335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=108335"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/108335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/108336"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=108335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=108335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=108335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} Scott and Mina O’Neill have expanded their property portfolio to New Zealand. Credit: Supplied Rethink <\/p>\n
New Zealand\u2019s commercial property sector is diverse and resilient, says Scott O’Neill. Credit: Fiona Goodall\/Getty Images \u00b7 Fiona Goodall via Getty Images <\/p>\n