Commercial property investors are not feeling very happy in Wellington these days, according to a survey released by a major realtor

Posted On Monday, 08 October 2012 07:55 Published by eProp Commercial Property News
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 The gloom does not apply to the rest of the country however, with some bright spots in their confidence 'weather map'.

Alan McMahonThe industry is expecting growth nationally, and Colliers say "there is strong demand from private investors, with syndications proving popular. The expectation that the cost of debt will stay low for the foreseeable future is also encouraging decision-making."

The results of Colliers International’s third quarter 2012 commercial property investor confidence survey show a widening gulf between the most optimistic and the most pessimistic cities in New Zealand.

Christchurch is the most positive city at 54% optimistic, in stark contrast to the most negative, Palmerston North, which is a full 78 percentage points behind at -24% pessimistic.

The 78% confidence gap this quarter is much greater than the 62% spread recorded in June 2012 and the 52% difference in March 2012.

The quarterly investor confidence survey asks commercial property market participants about their views on the outlook for commercial property investment over the next 12 months.

The average result for New Zealand as a whole this quarter was 11% - meaning more respondents think things will get better for commercial property investors over the next year, by the margin of 11%.

Alan McMahon, national director of research and consulting at Colliers International, says the dramatic spread between the most and least confident cities reflects the divergent expectations of regional economic prospects.

“New demand for property of whatever type arises from expansion – of population, businesses or the public sector. That extra demand can push prices up and/or or trigger new supply. Where there is an expectation of expansion then investors see a change to their benefit in the supply demand balance, and the reverse also applies.”

Last modified on Wednesday, 14 May 2014 19:33

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