Wellington property market update

by NZ Adviser27 Mar 2017
Colliers International released its latest Commercial Property Investor Confidence Survey and Residential Property Market Outlook Survey, showing confidence in both residential and commercial markets is growing.

Since November’s magnitude 7.8 earthquake last year, the results show overall confidence in Wellington’s commercial property market has grown, reaching 29%, up from 22% in Q4 2016. 

Confidence also remains high in the Wellington residential market, at 51%, up from 28% in December 2016. Although the figures remain lower than the pre-quake high of 63% in September 2016. 

Colliers International Wellington managing director Richard Findlay says overall confidence in Wellington’s residential market is defined by the lack of listings, with residential agencies reporting historically low levels of properties for sale. 

“Business confidence in Wellington remains high and as a result there are more buyers looking to upgrade their homes,” he says. 

“The Wellington residential investment market is strong, with large increases in rentals which is having a positive influence in prices. 

“Student numbers in Wellington have hit a record high, with more than 30,000 students now attending tertiary education providers in the region including Victoria University, Massey University and Whitireia Polytechnic.” 

Queenstown is the top in commercial (67%) and residential markets for investor confidence (74%).

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

Colliers International Research and Consulting national director Alan 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. 

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