Investor confidence remains high across most of NZ

The new research reveals Queenstown took out the top spot in both commercial and residential investor confidence at 64 and 74% respectively, closely followed by Hamilton (59%), Tauranga/Mt Maunganui (56%), and Auckland and Nelson (43%).

But the research, which tracks sentiment in the commercial and residential property markets and was conducted by the Colliers International Research and Consultancy team this month, also reveals investors remaining optimistic about the Wellington market and more negative about Christchurch.

Confidence is high in the Wellington residential market, at 51 per cent, up from 28 per cent in December 2016. However, this is still lower than the pre-quake high of 63 per cent in September 2016. The Wellington commercial property market has also grown despite November’s magnitude 7.8 earthquake, which reduced available office space by 7 per cent. Overall confidence is at 29 per cent, up from 22 per cent in Q4 2016.

Meanwhile the Christchurch residential market has dipped, with confidence down 14 points to 0% – meaning respondents are evenly split on whether the median price will go up or down in the next 12 months, while its investor confidence in the commercial market has also dipped to its lowest point since Q1 2011, which coincided with the February 2011 earthquake. Confidence is at -2%, down from 15% in the last quarter.