A new survey reveals investor confidence is high in the industrial property for the month of June
Investor confidence in the industrial property market increased across all main centres while sentiment in office, retail and residential markets declined, according to latest survey results from Colliers International.
The quarterly survey results revealed the industrial sector was 2-3% up in Auckland, Wellington and Christchurch.
In Auckland, the industrial market was “particularly buoyant,” as confidence rose up to 60% in the June 2017 quarter, research and consulting national director of Colliers International, Alan McMahon said.
“This level of positivity reflects Auckland’s record low industrial vacancy rate, which fell to 2.1% – the lowest point since our records began more than 20 years ago,” McMahon said.
Confidence in the overall commercial property market dipped slightly to 22% from some 24% on a year ago.
Similarly, confidence in the office and retail markets dropped in all three main centres, making way for Queenstown (66%), Tauranga/Mount Maunganui (55%), Auckland (41%) and Hamilton (28%) to land as the top four commercial markets for investor confidence.
In Wellington, despite record low retail vacancies, overall confidence in the commercial market dipped to 24% from 29% in the previous quarter.
“One surprising result is confidence in Wellington’s retail sector, which has fallen from 17% to 5% – the lowest in two years,” McMahon said.
Despite all regions experiencing a “slight decline”, for example, the confidence in the residential property market fell to 32% from 41%, residential outlook remains positive in New Zealand, according to McMahon.
“The dip is likely due to increasing interest rates and house price growth declining nationally. However, national sentiment remains upbeat, with almost all centres reporting a positive result.”
Queenstown, Tauranga/Mount Maunganui and Hamilton remain unchanged and are the top three residential markets with investor confidence of 68%, 51% and 46%, respectively.
The quarterly surveys, of which the commercial survey was based on 2,146 responses and the residential survey on 11,290 responses, were carried out by the Colliers International Research and Consultancy team this June.
The quarterly survey results revealed the industrial sector was 2-3% up in Auckland, Wellington and Christchurch.
In Auckland, the industrial market was “particularly buoyant,” as confidence rose up to 60% in the June 2017 quarter, research and consulting national director of Colliers International, Alan McMahon said.
“This level of positivity reflects Auckland’s record low industrial vacancy rate, which fell to 2.1% – the lowest point since our records began more than 20 years ago,” McMahon said.
Confidence in the overall commercial property market dipped slightly to 22% from some 24% on a year ago.
Similarly, confidence in the office and retail markets dropped in all three main centres, making way for Queenstown (66%), Tauranga/Mount Maunganui (55%), Auckland (41%) and Hamilton (28%) to land as the top four commercial markets for investor confidence.
In Wellington, despite record low retail vacancies, overall confidence in the commercial market dipped to 24% from 29% in the previous quarter.
“One surprising result is confidence in Wellington’s retail sector, which has fallen from 17% to 5% – the lowest in two years,” McMahon said.
Despite all regions experiencing a “slight decline”, for example, the confidence in the residential property market fell to 32% from 41%, residential outlook remains positive in New Zealand, according to McMahon.
“The dip is likely due to increasing interest rates and house price growth declining nationally. However, national sentiment remains upbeat, with almost all centres reporting a positive result.”
Queenstown, Tauranga/Mount Maunganui and Hamilton remain unchanged and are the top three residential markets with investor confidence of 68%, 51% and 46%, respectively.
The quarterly surveys, of which the commercial survey was based on 2,146 responses and the residential survey on 11,290 responses, were carried out by the Colliers International Research and Consultancy team this June.
