Confidence keeps climbing
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.
- Investor confidence in the industrial and commercial sector has climbed further, according to respondents. A net positive 27% (optimists minus pessimists) expected investment conditions to get better over the next 12 months. This is the highest score since the December 2016 quarter.
- Queenstown and Mt Maunganui/Tauranga continue to battle for top spot, and are first equal this survey.
- A further vote of confidence was recorded for Hamilton’s commercial and industrial sector for 2020 with a third place ranking for the second consecutive quarter. While Wellington is in fourth place, it has squeezed out Auckland into fifth place.
- 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.
- In Auckland, respondents’ confidence was highest in the industrial sector (65%), followed by the office sector (54%). Wellington respondents’ confidence was highest in the office sector (65%), followed closely by the industrial sector (53%).
- When asked what could have the biggest positive impact on the market in 2020, the most common response included sustained low interest rates, followed by a change in government.
- When asked what could have the biggest negative impact on the market in 2020, the most common response included tightening in bank lending, followed by overseas political tensions.
- There were 1,372 responses utilised to construct the survey results.