An annual property survey shows that investors have slowed down with their buying and selling , for the first time in several years.
The Nielsen Real Estate Market Report also suggests that the number of New Zealanders interested in investing in residential property has declined significantly over the past 12 months.
Last year, one in four of those surveyed said they intended buying residential property as a future investment. Now the figure is one in seven having the same intentions - the lowest level in the five year history of the survey.
This survey is in stark contrast to two other surveys of property investors since the Budget. The surveys by Landlords.co.nz and Mike Pero Mortgages, along with one by QV both showed that investors hadn't been put of property.
Simpson Grierson property lawyer and partner Greg Towers says that the Nielsen survey confirms observations that there has 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."
In addition, there is now a very clear intention among investors who own property to hold rather than sell, which is a clear indicator of why the property market in general has slowed significantly.
Realestate.co.nz chief executive Alistair Helm says the survey highlights the caution around the market at the moment.
"Holders of investment property showed a 42% 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'."
This sentiment is supported by the stats. In the space of a year, there has been a 24% increase of intention by property investors to seek out private sellers.
Source: Landlords.co.nzcomments powered by Disqus