The PCNZ/IPD Commercial Property Index recorded the second consecutive quarter of annual capital growth in three years, of 0.3 percent, for the broader New Zealand property market.
Annual income return was 8.2 percent and the total return was 8.5 percent for the year to June 2012. This is slightly up on the 8.4 percent annual return recorded last quarter, but down on the 10 percent long-run average.
The index says retail, with a 10.6 percent return, has led the office sector at (7.0 percent) through the investment cycle recovery phase.
According to the index, the retail sector outperformed office due to strength in retail spending.