NZ’s first Green Property Investment Index
The PCNZ/IPD’s new Green Property Investment Index provides a measure of investment performance across office buildings that have been awarded a Green Star rating.
The Property Council of New Zealand (PCNZ)/Investment Property Databank (IPD) Green Property Investment Index provides a measure of investment performance across office buildings that have been awarded a Green Star rating. The index, sponsored by Goodman and CBRE, comprises data from 12 participants representing circa NZ$1.3 billion of Green Star-rated office buildings. The index details income return and capital growth on a quarterly basis and provides pricing and market metrics such as capitalisation rates, discount rates and capital values.
Launched on 7 November 2012, the index shows that office buildings with a Green Star rating returned 8.9 percent and outperformed non-rated buildings, which returned 6.4 percent in the year to September 2012. Return outperformance for Green Star rated buildings was driven by a positive capital growth component of 1.7 percent. Conversely, non-rated office buildings experienced a negative 1.4 percent capital decline.