Confidence in Commercial Property Remains High
The results of the March 2014 quarter Commercial Property Investor Confidence Survey undertaken by Colliers International shows that overall confidence remained high in the first quarter of 2014 with a net positive 28 per cent - only slightly below the record high net positive 31 per cent reached in fourth quarter of last year.
The survey, which garnered 3707 responses, showed that Auckland investors are more optimistic than investors in any other region with a net positive 58 per cent, just ahead of Queenstown investors at a net positive 56 per cent. Confidence in Auckland is propelled by forecasts of higher economic activity with Queenstown benefiting from population and tourism growth.
Investor confidence in Wellington grew to a new high with a net positive 10 per cent. Colliers attributes this to clarity in the investment market due to a greater understanding of seismic strengthening requirements and a more positive outlook on market drivers are providing investors with more confidence.
Optimism in Christchurch declined to a net positive 43 per cent, the lowest result since 2012. “This is a reflection of a more stabilised investment outlook after a sustained period of record activity.”
Outside of the main centres, investor confidence continues to fluctuate. Higher confidence is exhibited in regions with positive underlying fundamentals such as population growth and better employment opportunities.
The following graphs show commercial property investor confidence by main centres and regions.