Investor confidence declines further

by Krizzel Canlas21 Aug 2018

Confidence among New Zealand investors has fallen from 21% to 16% in the three months ending in June, continuing the downward trend recorded since the start of 2016.

According to the latest ASB Investor Confidence Report, net investor confidence fell in every region across the country except for Canterbury, where it remained steady at 19%. The decline was caused by the easing of expectations regarding term deposit returns.

“The survey took place before the recent trims to some bank rates, and the RBNZ’s most recent OCR announcement, so we could see further weakness in this area in the next quarter too,” ASB senior wealth economist Chris Tennent-Brown said.

However, ASB said it is important to note the majority of respondents are still positive, with some 27% expecting increased investment returns and 40% expecting returns to stay the same in the next 12 months.

Moreover, personal homes continue to be viewed as the best investment for providing a good return with 23% and rental properties with 18%, contrary to term deposits, which took a 9% dive from 13% in the previous quarter.

“It continues to be disappointing to see quite low expectations regarding KiwiSaver and managed funds relative to term deposits,” Tennent-Brown said.


Related stories:
Mortgage rates are set to fall – Westpac
Kiwis very slowly regaining confidence in the housing market


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