Property investment takes big hit in new survey

Photo / Greg Bowker

An annual property survey shows the number of New Zealanders interested in investing in residential property has declined significantly, for the first time in several years.

The Nielsen Real Estate Market Report, an online survey sponsored by Realestate.co.nz, found that last year one in four of those surveyed said they intended buying residential property as a future investment.

Now just one in seven have the same intention - the lowest level in the history of the survey.

Specialist property lawyer at Simpson Grierson Greg Towers said there had been a measurable decline in the number of transactions involving the traditional property investors.

"This is unlikely to change until there is uplift in the general economy and a greater degree of confidence shown in the property market by all parties."

Investors were now tending to hold on to property rather than sell.

Realestate.co.nz chief executive Alistair Helm said the survey highlighted caution around the market.

"Holders of investment property showed a 42 per cent decline in intention to sell, which is a huge decline.

"As a result, there is likelihood that those investors still looking to find value will target private sellers who they perceive to offer better deals in this type of 'Buyer's Market'."

In a year, there had been a 24 per cent increase of intention by property investors to seek out private sellers.

The survey represented the first published data since the announcement of tax changes to property investment announced in May's Budget.

- NZPA