Property Industry confidence falls with income outlook

By NZPA

Tuesday 18th June 2002

Confidence among members of the property and building trade is falling fast, according to the latest industry poll.

The Property and Construction Index, which surveys 3000 members of the New Zealand Property Institute, showed that the number of members expecting conditions to improve over the next 12 months fell to 34 percent in May, from 47 percent in January.

Those expecting conditions to worsen rose to 31 percent from 19 percent at the beginning of the year.

"This drop in confidence is a concern," institute chief executive Conor English said.

Respondents were concerned about falling commodity prices and the effect this would have on rural and provincial spending, he said.

Another issue was that high immigration levels, which have kept the property sector in good health in recent months, had now become a "political football" -- threatening future immigration growth, Mr English said.

Hopes that the Government's Superannuation Fund would provide extra investment in the local property market were also declining, Mr English said. Much of that fund will be invested offshore.

Despite the latest fall, the confidence index is still at a similar level to where it was at the same time a year ago.

Aucklanders continue to be more positive than Wellingtonians, Mr English said, carrying on a six-month trend.

Comments from our readers

No comments yet