The results of Colliers International’s fourth quarter 2012 commercial property investor confidence survey are in and they show that Auckland retail investors feel most positive about the market.
The survey asked participants to share their views about the outlook for the coming year and a total of 4,485 responses were compiled for the report.
Auckland retail investors’ confidence increased from two per cent in the previous survey to 14 per cent.
In contrast Wellington retail investors were the most pessimistic of all respondents at minus 12 per cent.
Wellington office investors shared the gloomy outlook of their retail associates. Their survey results were even less positive at minus 18 per cent.
According to Alan McMahon, the national director of research and consulting at Colliers International, the gulf between the most optimistic and pessimistic cities in New Zealand is continuing to widen.
Christchurch is the most positive city in the country with 53 per cent of respondents sharing an optimistic outlook, while Palmerston North recorded the most negative results with a rating of minus 26 percent.
The difference in confidence ratings from the highest to the lowest is 80 percentage points.
This gap is much more pronounced than the 62 per cent spread that was recorded only six months ago. In March 2012 the difference was 52 per cent.
The average result for New Zealand for the last quarter was 15 per cent, which meant more respondents think conditions will improve in the commercial property market over the next 12 months.
McMahon stated the significant spread between the most and least confident cities indicates regional differences in economic expectations.
He added that the New Zealand commercial property market has achieved stability and is now waiting for growth. There is strong demand from private investors and the cost of borrowing is expected to remain low which should provide a boost to the market.
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