28 May 2025
As investors weigh up their next move amid shifting market conditions, one question is echoing louder than ever: is now the right time to invest?
At PMG, we understand the hesitation. Interest rates have moved aggressively in recent years, global uncertainty remains high, and economic headlines often send mixed signals. But in our experience, shaped by over three decades of disciplined fund management, some of the best investment decisions are made when conditions feel uncertain, not when they feel easy.
The cycle is shifting
New Zealand’s Official Cash Rate has dropped 225 basis points since August 2024 and is expected to fall further before year-end. Inflation is cooling. The tariff turbulence that rattled global trade in Q1 is easing. And slowly but surely, signs of economic recovery are emerging.
These macro trends are already being reflected in commercial property performance. Across PMG’s diversified portfolio, we’ve recorded an average 2.4% increase in property valuations over the past 12 months. While not dramatic, this upward movement is consistent. And importantly, it’s underpinned by fundamentals, not speculation.
In this phase of the cycle, slow and steady is exactly what we want to see.
Commercial property: built for resilience
Commercial property remains one of the few asset classes where value is driven by real-world performance. Long lease terms, strong tenant retention and the ability to grow rental income over time provide a robust foundation for investors seeking stability.
That’s especially true for unlisted commercial property funds. Unlike listed property stocks or direct ownership, PMG’s funds offer access to institutional-grade assets with built-in diversification across tenants, sectors, and locations, and without exposure to daily market volatility.
It’s a structure that has stood the test of time, and in this environment, it’s proving its worth.
Tax efficiency and the power of PIE
For income-focused investors, PMG’s Portfolio Investment Entity (PIE) structure is a key advantage. Because investors are taxed at their prescribed investor rate (PIR), rather than their personal income tax rate, the after-tax return can be materially improved. It’s a small detail that can make a big difference over the long term, and one of the many reasons investors are looking more closely at unlisted funds right now.
A strategic entry point without the wait
While many are waiting for the “perfect” time to enter the market, there is also opportunity in the secondary market.
PMG facilitates a matching service to help existing and prospective investors trade shares or units in our funds, even when no new offer is open. While availability is dependent on supply and demand, it provides a valuable pathway for those looking to get exposure to high-quality commercial property without delay.
Stay the course, and stay ahead
If history has taught us anything, it’s that markets reward patience. The investors who tend to come out ahead are not the ones who try to time the bottom, but those who remain focused on fundamentals and stay invested through the discomfort.
That’s the PMG philosophy, and it’s served our investors well through many market cycles.
To explore available investment opportunities, contact our team at invest@pmgfunds.co.nz.
Disclaimer: The information in this article is of a general nature and was current as at May 2025. It is not intended to be regulated financial advice for the purpose of the Financial Markets Conduct Act 2013 and does not take your individual circumstances and financial situation into account. As with any investment, commercial property carries risks, including the risk of loss of capital. Past performance is not a guarantee of future results. PMG does not provide financial advice about whether an investment in one of its funds is right for you. Please seek advice from a licensed financial advice provider before making any investment decisions. PMG’s secondary market matching service operates on a queue system, and there is a fee. The time it takes to move shares or units can vary depending on the number of sellers in the queue and the level of demand.
