Queenstown top of the table in property investment confidence

Auckland, March 24, 2017

Queenstown remains at the top of the table in the latest Colliers International quarterly confidence surveys.

The Commercial Property Investor Confidence Survey and Residential Property Market Outlook Survey were conducted by the Colliers International Research and Consultancy team this month.

The results show net confidence in the Queenstown commercial property market is at 67 per cent, putting it in the top spot for the seventh quarter running.

Queenstown is also at the top of the residential market, with confidence at 74 per cent.

Colliers International Otago Managing Director Alastair Wood says it’s great to see Queenstown at the top of the table once again.

“Queenstown has been leading the way for some time now due to the solid growth that is characterising every aspect of our region and its property market right now. Investor confidence is running parallel with this,” he says.

“The Queenstown property market has been in an extended growth phase, and this is reflected in value growth through all sectors, with both our residential and commercial markets taking top spot in the eyes of the investors.

“Strong growth in both tourist and resident numbers has energised commercial investment and construction activity, with an excess of $400 million of construction currently underway in both the private and public sectors.”

The Colliers International surveys found overall net confidence in the New Zealand commercial property market remains positive at 24 per cent, down from 32 per cent in Q4 2016, while confidence in the national residential market remains steady at 41 per cent.

Colliers International Research and Consulting National Director Alan McMahon says while there has been a dip in commercial investor confidence, the 24 per cent net positive result means a significant majority of those who think the market will change are optimistic.

“New Zealand market fundamentals are sound, with demand for offices, shops, and industrial property steady to strong across the country,” he says.

“Centres with good growth in resident or visitor numbers, which boosts demand for all property types, tend to have higher confidence.”

After Queenstown, the top commercial markets for investor confidence are Tauranga/Mt Maunganui (56 per cent), Auckland (47 per cent) and Hamilton (41 per cent) for the third quarter in a row.

In the residential market, Queenstown is followed by Hamilton (59 per cent), Tauranga/Mt Maunganui (56 per cent), and Auckland and Nelson (43 per cent).

McMahon says the overall positivity in the residential sector is a strong result.

“It is no surprise that where population growth is strongest, upward price pressure is more evident than in centres with slow-growing or static populations,” he says.

“The exception is Wellington, which is showing huge confidence despite a relatively slow-growing population. Our view is that Wellington has been too cheap for too long and is now playing catch up.

“At the other end of the scale Christchurch confidence is neutral, suggesting equilibrium between demand and supply.”

The surveys were based on 2,299 responses from the commercial sector and 14,781 responses from the residential sector.

ENDS

Full results are available in the accompanying Commercial Property Investor Confidence Survey and Residential Property Market Outlook Survey.

Residential_Property_Market_Outlook_Survey_Q1_2017.pdf

Commercial_Property_Investor_Confidence_Survey_Q1_2017.pdf

About Colliers International:

Colliers International Group Inc. is a global leader in commercial real estate services with 15,000 professionals operating from 396 offices in 68 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years, more than any other real estate services firm.

Founded in Australia in 1976, Colliers International is the largest locally formed real estate services firm with professionals worldwide. Find out more at www.colliers.co.nz

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