The reason my building did not attract a new tenant, and why the last tenant moved was because it had become surrounded by multi-storeyed student accommodation. My intention was to own it forever, but the area changed. Damned if I know where land baking comes into it. All my investing is for permanent income - always has been. I am worse off from selling it.
In the other example, as stated there was a massive so-called profit from selling the Ch-ch property. It was replacing it - Dunedin prices had risen just as much - and all the associated costs that ate up all that profit. Don't be too hung up on CGT. Go and spend a year in Australia and see if you still think it's a good thing. As I have stated before, CGT, if not well designed, e.g. Australian system, is a bad tax. It will certainly harm the NZ share market, but will not affect real estate prices.