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.
Highlights of our December 2019 quarter Commercial Property Investor Confidence Survey:
- 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.
