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CPII Survey February 2017
24 February 2017
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:
- 46% of investors surveyed said Methamphetamine contamination in rental properties is becoming more of a problem
- Only 24% of investors surveyed knew of the Governments’ Draft National Standard for Testing and Decontamination of Methamphetamine Contaminated Properties report released for public comment
- The Auckland Rental Property Investment Index has increased this month due investors looking to increase their portfolios
On 12 December 2016, the Draft National Standard for Testing and Decontamination of Methamphetamine Contaminated Properties was released for public comment. The standard hopes to address the maximum contamination level that can exist in a property after it has been cleaned. The Standard suggests two possible decontamination level options, as follows:
1. Option A: A single level of 1.5mcg/100cm2 for living spaces and a higher level of 3.4mcg/100cm2 for limited exposure areas (e.g. roof spaces and crawl spaces); or
2. Option B: Three levels, as proposed in the ESR Report commissioned by the Ministry of Health, being:
a. 0.5mcg/100cm2 where contamination is caused by lab activity;
b. 1.5mcg/100cm2 for carpeted properties; and
c. 2.0mcg/100cm2 for properties without carpet
Slightly less than one quarter of property investors who responded to our recent CPII survey in association with IPSOS were aware of this report, while 2% of property investors had chosen to make comment on the draft report.
Only 8% of property investors surveyed indicated that they feel landlords receive adequate protection from Methamphetamine contamination. When asked whether they feel that Methamphetamine contamination in rental properties is lessening or becoming more of a problem, 46% of property investors stated they feel it is becoming more of a problem, while 8% of investors feel that methamphetamine contamination is staying the same and 46% of investors are unsure extent of issue. No property investors felt that methamphetamine contamination was becoming less of a problem.
Crockers Property Investment Index
This month the Auckland Rental Property Investment Index has improved after easing for two consecutive months. This improvement has been driven by a slight increase in the proportion looking to increase their Auckland rental property investment. The majority of property investors still plan to make no changes to their Auckland rental property investment, although this proportion has eased since January.
The Auckland Rental Property Performance Index has increased for a second consecutive month and is at its highest point since November 2015. This increase is due to a slight decrease in the proportion of investors who believe their property investments will perform worse over the next 12 months. The majority of rental property investors expect their investments to remain the same over the next 12 months, increasing slightly since last month. These movements are consistent with the trend experienced since the end of 2016.
This research, undertaken by Ipsos on behalf of Crockers, surveyed members of the Crockers Market Research subscriber’s database during February 2017. Respondents included property owners, residential and commercial landlords, property managers, estate agents and tenants. This is an ongoing series of monthly surveys, delivering a regular barometer of property investors’ confidence in the Auckland market.
For more details, please contact:
Kim Sinclair | Marketing Manager, Crockers Property | firstname.lastname@example.org | 09 623 9515
Jonathan Dodd | Research Director, IPSOS Ltd | email@example.com | 09 538 0500