Commercial property investors more confident

Commercial property investor confidence is up almost 10% on a year ago and Queenstown is near the top echelon of rankings but Dunedin remains mired in pessimism near the bottom. Colliers International quarterly commercial investor confidence survey, for the quarter to March, was nationally up 10% on the previous quarter to December at 25%, or 9% on the corresponding quarter a year ago.

In Queenstown a year ago, investor confidence stood at an optimistic 26%, but had bounded to 57% for this quarter to March, while investor confidence a year ago in Dunedin remained in pessimism, being -1%, which was repeated for the current quarter to March.

In order of top rankings, Christchurch's optimism stands at 60%, Queenstown 57% and Auckland at a record 48%, while the bottom four of the 12 towns and cities ranked are Dunedin at -1% pessimism, Napier-Hastings -3%, Whangarei -4% and Palmerston North, at -14%.

Dean Collins, director of Colliers in Dunedin, said Queenstown was benefiting from its choice as a ''true international destination'', which subsequently attracted higher net-wealth individuals to the area.

However, in Dunedin there was only a ''general feeling of [future] improvement''. There was some evidence people were considering investing, with the low interest rates on offer at present, and investment interest from Christchurch people.

Alan McMahon, national director of research and consulting at Colliers, said national confidence had improved now economic growth was established, retail sales were up, the Christchurch rebuild was under way and the sector was ''coming to grips with the impact of seismic strengthening issues nationwide''.

''This is quite a staggering increase in confidence and is the highest national result since we began the survey in June 2009,'' Mr McMahon said.

The overall confidence reading means more respondents, of the total 4457 responses received, thought things would get better for commercial property investors during the next 12 months, by a margin of 25%.