Nationwide, confidence is at a net positive 28%, near the record high set at the end of 2013.
Auckland investors continued to exhibit the highest levels of confidence out of the 11 regions surveyed this quarter, with a net positive 58%, followed closely by Queenstown at a net positive 56%.
Confidence in Auckland was propelled by forecasts of higher economic activity, while Queenstown is benefiting from population and tourism growth, Chris Dibble, national research manager for Colliers International, said.
“Economic activity in New Zealand is expected to grow between 3% and 4% per annum over the next few years, at the top end of all OECD countries,” Dibble said. “Businesses are signalling growth in employment. More employees mean more space absorption, driving new leases for expansion and the development of new premises. Tenant confidence is stirring investor enthusiasm and investment activity. Owners and landlords are locking in rental rises and further yield compression is occurring as competition increases amongst investors.”
He said many had already factored in the impact of rising interest rates.
Outside the main centres, investor confidence is higher in regions with positive underlying fundamentals such as population growth and better employment opportunities.
Wellington investor confidence reached a new high of net positive 10%, up substantially from a year ago.
The renewed confidence was due to a greater understanding of seismic building requirements and a more positive outlook on the market drivers, said Jim Pinson, executive director of Colliers Wellington agency office.
“Vacancy in the A grade office property market sits just below 5%, a shortage that has persisted now for some years due to several factors,” Pinson said.
In Tauranga/Mt Maunganui, investor confidence was net positive 41%, up from 35% last quarter and 28% a year ago.
In Hamilton investor confidence was a net positive 30%, compared to 31% last quarter and 22% a year ago.
In Napier Hastings, confidence was a net negative 3%, level with last year. However, Colliers International Hawkes Bay franchise manager Cam Ward expects confidence levels will climb soon.
Colliers’ quarterly confidence survey asks commercial property market participants about their views on the outlook for commercial property investment over the next 12 months. The results are based on 3707 responses to
this quarter’s survey.
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