A new survey from ASB reveals Kiwi investor confidence has softened
Investor confidence in New Zealand has softened in recent months, according to the latest investor confidence report from ASB.
The report revealed net investor confidence dropped slightly from 25% to 23% net positive in the three months to June.
The upcoming election, changes in the retirement age, tax rates, valuations in some asset markets and other policies all add up to the degree of caution seen in the market, said ASB senior wealth economist, Chris Tennent-Brown.
“It’s understandable to see some caution in the market as people ponder policies that will impact them," Tennent-Brown said. "As well as the various policies that could impact the housing market.
“We all know how expensive houses have become over recent years, and now we are seeing the market flatten in many areas, including Auckland.”
When it comes to investment providing the best returns, the report revealed that rental property had moved up at 21%, to be level with own home this quarter.
This is followed by term deposits, the leading bank product providing the best returns, at 12%, and KiwiSaver, which has taken a small dip from 10% to 9%.
Investor sentiment for shares fell from 7% to 6% (net positive) this quarter.
“This isn’t a major drop, but perhaps reflects a degree of caution given where share valuations have reached over recent months,” Tennent-Brown said.
Although confidence remained at a historically high level, the survey revealed there is still a preference among investors for safer rather than riskier investments, he said.
The report was drawn from 773 online interviews with adult New Zealanders aged 18 years and older, during the second quarter of 2017.
