6 March 2008
Auckland property market not so gloomy
International property adviser, DTZ, has released its annual overview of the Auckland property market with findings
suggesting it's not all gloom and doom for the property industry as some have suggested.
DTZ head of research, Ian Mitchell, who presented the comprehensive overview this morning at a business breakfast,
stated that despite a global slow-down New Zealand occupier markets are relatively sound in large part due to sound
occupier rates and a strong economy that continues to grow albeit at a slower rate.
"While New Zealand is not immune to global trends, the New Zealand situation differs from that of America and the United
Kingdom who have seen thousands made redundant in the finance industry as a result of the sub-prime crisis," says Ian
Mitchell.
Ian Mitchell also noted that key drivers on the horizon for the property industry will be the combination of the right
sizing of the second tier lending market, a slow down in household discretionary spending, and lower growth in business
profits.
"Anecdotal evidence also suggests that overseas corporates are deferring significant commitments which could slow future
development activity," says Ian Mitchell.
-ENDS-