CPII Survey July 2018
Each month Crockers Property in partnership with independent market research firm Ipsos, survey Auckland property investors for their comments and thoughts on the Auckland property market. The results of the latest CPII survey (Crockers Property Investment Index) are as follows:
- Some 12% of the property investors surveyed are yet to fully insulate their rental properties in response to the government’s Healthy Homes Act, while 23% have done so in response to the act. Another 65% of investors already have their rental properties fully insulated.
- Earlier this year various news outlets reported that insulation providers had increased their prices up by the same amount of the government subsidy – essentially meaning that the providers are pocketing the subsidy. There is evidence of insulation price rises occurring with 18% of investors reporting an increase in the price of insulation since the acts introduction, with over half of these saying that prices had gone up ‘a lot’.
- The Auckland Rental Property Investment Index has decreased this month. Interestingly, there has been a divergence of opinion brought on by a decrease in the number of investors who believe that the rental market will remain the ‘same’ and an increase in those who believe there will either be an improvement or deterioration within the rental market.
Healthy Homes Act
Homes Insulated in Response to the Act
As of 1st July, 2019, the new Healthy Homes Act requires landlords to ensure that any new tenancy must be properly insulated or contain a heating source that is able to keep the home warm and dry. This month respondents were asked if they had insulated their properties in response to the act.
Encouragingly, 65% of respondents already had all their rental properties insulated. Only 12% of investors have not currently insulated their home. We should note that as most of these investors are using Crockers Property Management, they will be well informed as to their obligations.
Price of Insulation
Respondents were also asked if they had noticed any price fluctuations after various news outlets reported that insulation providers had increased their prices up by the same amount of the government subsidy – essentially meaning that the providers are pocketing the subsidy. Overall, among property investors there is a level of unawareness of the price of insulation. However, 18% of investors have noticed a price increase, suggesting that there may be evidence of price gouging in the market for insulation.
Crockers Property Investment Index
Auckland Rental Property Performance Index
This month the Auckland Rental Property Investment Index has decreased, as a result of an increase in those looking to sell off some of their investment portfolio.
The Auckland Rental Property Performance Index has also decreased this month, as more investors believe the performance of the Auckland rental property market over the next 12 months will get worse.