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Confidence hits positive territory for first time

Confidence hits positive territory for first time

Date Posted: Sep 21, 2009

Colliers International’s latest quarterly commercial property confidence survey shows that confidence levels across the entire country are rising sharply, with the first positive confidence result taking place in the Tauranga / Mt Maunganui region.

This continues the positive trend shown in the last survey in June, which saw the first rises since previous record lows in March.

Key survey findings:

· Every sector and every market has improved

· The sharpest rise in optimism has been recorded in Auckland, which has jumped from -45% to -19%

· Wellington investors are now the least optimistic in the country, although confidence levels in the region have risen from -37% in June to -23% in September.

· Christchurch has finally caught the optimism bug, jumping 24% to -14%

· Auckland retail investors have shown the strongest jump in confidence levels in the city, up 68% from the low in March

  • Of the smaller centres, the biggest improvements have been in Dunedin and Queenstown.

Alan McMahon, Research Director for Colliers international, said: “Investors in all sectors are taking heart from positive news in the wider economy, including steady retail sales and improving manufacturing activity.

“Although commercial property values have fallen in the last year across the country, investors are feeling that the worst is over, and although rents are unlikely to grow much in the near term, markets are at least stabilising.”

“Tauranga / Mt Maunganui has leapt into positive territory because there has been a major value adjustment in that market. Capital values for CBD properties have fallen more in this market than in any other centres, and are unlikely to fall further. Also, as the residential market continues to struggle, more investors are turning to commercial investment, creating additional demand.”

Colliers’ survey garnered over 3500 opinions, asking what investors and other commercial property professionals think will happen to the market in the next twelve months.

ENDS

Note: The June 09 survey was the first to cover the whole country.

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For more information, please contact:

Alan McMahon

Alan McMahon

National Director - Research and Consulting
Auckland Office
DDI: +64 (9) 356-8811
Fax: +64 (9) 358-1999
Email: alan.mcmahon@colliers.com

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