The industrial sector is leading a new recovery in commercial property confidence across the country, taking confidence in the main cities to their highest point in 18 months, according to Colliers International’s June 2010 quarterly confidence survey.
The survey shows that after a dip in March, confidence levels are back on the rise across all sectors and in most market regions, with the exception of Whangarei, Nelson and Palmerston North.
However, the standout performer is the industrial sector, which has crossed into positive territory for the first time in Auckland (+6%), the leader in Christchurch (0.0%) and just off the leader in Wellington (-8%). In all major centres, industrial confidence is up.
Key survey findings:
- Auckland has leapt to its most positive result (-11%) since 2007, up ten percentage points since March;
- Wellington and Christchurch have increased in confidence and now stand at their highest levels since the survey began at the end of 2008.
- Confidence about the next twelve months increased in 8 regional centres and declined in three;
- The most positive place in the country continues to be Tauranga (+9%), the only place in the country where positivity continues to grow and optimists outnumber pessimists
- Queenstown continues to increase in confidence, up 13% since December to reach -7%
- Palmerston North has replaced Wellington as the most negative place in the country, dropping 8% to -23%, its lowest point since the survey began.
When you consider how low the main cities have been – Auckland -72%, Wellington -65% and Christchurch at -55% - it is heartening to see the latest figures showing Auckland at -11%, Wellington -18% and Christchurch at -10%.
There is a pleasing level of both consistency and caution in these figures. There is more optimism in every sector in all three major centres, but the wild swings we saw in previous years have been replaced by more considered views.
In terms of the smaller centres, the variable results reflect conditions in each local economy. Where landlords think strong demand will keep rents and capital values up, they are optimistic. Where they see a risk of falling rents and values due to weak local demand, they are pessimistic.
3450 responses were utilised to construct the survey results.
ENDS
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Sales,
Office Leasing,
Retail,
Industrial,
Character Space,
Valuation and Advisory Services,
Corporate Solutions,
Research & Consultancy,
Auckland Office,
Whangarei Office,
North Shore Office,
South Auckland Office,
Hamilton Office,
Tauranga Office,
Hawkes Bay Office,
Palmerston North Office,
Wellington Office,
Christchurch Brokerage,
Nelson Office,
Queenstown Office,
Dunedin Office,
Alan McMahon