High-flying property stocks likely to rise further: Jarden

Wed, 31 Jul 2019

By Jenny Ruth Aug. 1 (BusinessDesk) - The value of New Zealand’s listed property stocks has risen 60 percent on average since they bottomed in 2012 and they are now trading about 18 percent above their net tangible asset backing. That suggests the market expects the value of their properties to rise further, says Jarden analyst Owen Batchelor. In a note on the sector, he says that capitalisation rates for the sector have compressed by about 230 basis points since 2012 – as cap rates fall, property prices rise. “Despite cap rates at...

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