Solid outlook for another year
Colliers’ quarterly confidence survey asks commercial property market participants about their views on the outlook for commercial property investment over the next 12 months across New Zealand.
- Another solid year ahead according to Colliers’ latest Commercial Property Investor Confidence survey results. A net positive 24% (optimists minus pessimists) of respondents expect investment conditions to get better over the next 12 months. This is similar to the five year average of a net positive 25%.
- The new-look charts to the right include the proportion of survey responses by answer to highlight the number of neutral responses which are not part of the ‘net positive’ calculation, but form an important component of respondent expectations.
- The bottom right chart shows the general decrease in the number of pessimistic responses nationally over the past decade, but a relatively similar trend over the past few years.
- 12 out of the 13 regions recorded a net positive score. Christchurch was the exception, however, there is a large number of respondents expecting conditions to remain stable in the Christchurch office and retail sector and solid optimism in the industrial sector.
- It is on in Hamilton, recording an all time high of a net positive 50%.
- In Auckland, respondents’ confidence was highest in the industrial sector (64%), followed by the office sector (49%).
- Wellington respondents’ confidence was highest in the office sector (58%), followed closely by the industrial sector (51%).
- When asked, 59% of respondents stated that they expected investment yields to decrease over the next 12 months, of which 52% believed they would decrease by 0-25 bps.
- There were 1,353 responses utilised to construct the survey results.