Positive sentiment rising
Colliers’ quarterly market outlook survey asks residential property market participants if the median house price will stay the same, decrease, increase by less than 5%, or increase by more than 5% over the next 12 months across New Zealand.
Highlights of our December 2019 quarter Residential Property Market Outlook Survey:
- A wave of positivity swept the nation in our latest survey with a significant lift in expectations for the median price next year.
- A net positive* 41% of respondents expected the median price to increase in the next 12 months, up from a net positive 18% recorded in the September 2019 quarter survey.
- For the first time since the September 2017 quarter, all 13 regions achieved a net positive score. This has led to the highest national score since the March 2017 quarter.
- Queenstown remained in first place with a net positive 63% and Tauranga/Mt Maunganui remained in second place with a net positive 55%.
- After a relatively sombre year, respondents this survey were feeling much more upbeat for Auckland’s future, pushing it to third place. The median price outlook for the Auckland region achieved a net positive score of 49%, up significantly from the last quarter which recorded a net positive score of 6%.
- In addition to the surge in Auckland, median price expectations in Rotorua, New Plymouth, Palmerston North, Christchurch and Dunedin have almost doubled since the last survey.
- When asked what could have the biggest positive impact on the market in 2020, the most common response included low interest rates, followed by a change of government.
- When asked what could have the biggest negative impact on the market in 2020, the most common response included election uncertainty, followed by global uncertainties.
- A total of 4,518 responses were utilised to construct this survey.