Scoop has an Ethical Paywall
Licence needed for work use Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

House price expectations dip but remain positive overall

House price expectations dip but remain positive overall

Auckland, September 21, 2018


Median house price rise expectations have dipped ahead of the Overseas Investment Amendment Act coming into force next month, the latest Colliers International survey shows.

The latest quarterly Residential Property Market Outlook Survey, released today, found the number of respondents expecting median prices in New Zealand to rise over the next 12 months still outweigh those who expect a decline.

However, the result of a net positive 26 per cent this quarter is down from a net positive 36 per cent recorded three months ago.

Chris Dibble, Director of Research and Communications at Colliers International, says the lower level of positivity this quarter seems to surround Overseas Investment Amendment Act changes.

“Almost half of our survey respondents were pessimistic about the market impact when discussing the new Overseas Investment Amendment Act which comes into force on October 22.

“Development activity and lower sales volumes also remain front of mind for survey respondents.”

Despite the lower recorded sales activity in Auckland, there is an overall expectation that prices will increase. An overall net positive 16 per cent of respondents expect the median price to increase over the next 12 months.

The highest expectation of house price growth is Queenstown, followed by Tauranga/Mt Maunganui and Wellington.

Dunedin and Whangarei were the only two locations to record an increase in the net per cent of respondents expecting the median price to increase over the next 12 months.

Advertisement - scroll to continue reading

In the commercial property sector, investors are cautious but confident.

The latest quarterly Commercial Property Investor Confidence Survey, which tracks sentiment rather than price expectations, shows overall confidence is at a net positive 21 per cent (optimists minus pessimists). That is down slightly from 23 per cent recorded three months ago.

Nine out of 12 regions recorded a net positive confidence score.

Wellington’s investor confidence, which has been building since late 2013 and recently outpaced Auckland for the first time in nine years, remains ever so slightly above Auckland’s investor confidence levels.

Queenstown and Tauranga/Mt Maunganui have taken the top two spots for the ninth consecutive quarter. Hamilton remains in third spot, just in front of Wellington and Auckland.

“Momentum looks to be gathering for Christchurch’s industrial sector with a net positive 16 per cent, the highest result in 18 months,” Dibble says.

“Despite holding the lowest net investor confidence score of all three sectors, retail was the only sector to increase in all three main centres this survey.”

The three biggest risks and trends for commercial property in the next 12 months, as identified by survey respondents, are the economic and political environment, costs and business confidence.

The residential survey drew on 6,634 responses while the commercial survey drew on 2,436 responses.

ENDS

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.