Queenstown's investor confidence is vying for top spot.
Photo by Stephen Jaquiery.
Queenstown and Dunedin are poles apart in commercial
property investor confidence, as the tourism capital vies with
Auckland for top spot.
The Colliers International quarterly survey on commercial
property investor confidence, based on more than 3700
responses, has shown a dip in national confidence from the
previous quarter to December, from 31% to 28%.
However, as with housing data from Quotable Value and the
Real Estate Institute of New Zealand, Auckland and
Christchurch are overshadowing most regional results.
Auckland and Queenstown have returned confidence levels at
58% and 56% respectively, similar to the previous quarter,
while Christchurch has slumped from 60% to 43%, but is
third-highest of the 11 regions canvassed.
At the far end of the positive scale was Dunedin, declining
from 5% the previous quarter to the last of the eight regions
in positive territory, at 3%.
Three other regions were negative.
Colliers Queenstown office managing director Alastair Wood
said investor confidence had been high during the past year,
at net 56%, mirroring the previous quarter and only slightly
down from a net positive 57% a year ago.
''January saw a record number of guest nights, and
construction activity continues to gain momentum with some
larger projects under way.
''That includes the $40 million upgrade by NZski of the
Remarkables skifield, stage one of the new 28,000sq m Five
Mile commercial development and confirmation of two new
schools,'' Mr Wood said in a statement.
During the first quarter, Colliers saw increased sales
activity and a firming of commercial property yields. Central
Queenstown yields were between 5% and 5.5%, Frankton area
commercial yields at 6% to 7% and industrial at 7% to 7.5%,
Colliers national research manager Chris Dibble said Auckland
confidence was being propelled by forecasts of higher
economic activity, while Queenstown was benefiting from
population and tourism growth.
Beyond the main centres, investor confidence was higher in
regions with positive fundamentals, such as population growth
and better employment opportunities, Mr Dibble said.
''The rises in interest rates over the next year may curb
some enthusiasm, but much of the impact has already been
considered by purchasers and financiers.
''There is a sizeable amount of capital in the market
searching for a home, and real estate continues to provide a
popular choice for many,'' Mr Dibble said.
In the negative range, Napier-Hastings, Whangarei and
Palmerston North all repeated the previous quarter, recording
between -3% and -10% investor confidence.