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CPII Survey May 2017

PRESS RELEASE

25 May 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:

  • Investors increasingly likely to keep expanding rental portfolios. The Auckland Rental Property Investment Index has improved for the fourth consecutive month, reflecting a considerable increase in the proportion of investors who plan to increase their property investments and only a modest increase in the proportion planning to divest, leaving a net gain.
  • 44% of investors surveyed said that location is the most important factor when buying an investment apartment, followed by being freehold, (43%).
  • Body Corporate fees are a major consideration for investors (36%), followed by the company providing the body corporate management (30%)
  • The Auckland Rental Property Performance Index saw a recovery this month, due to a sizeable increase in investors who believe their property investments will perform better over the next 12 months coupled with no change in the proportion of those who believe their investments will perform worse.

Apartment Management & Investment Options

Investors surveyed in the latest Crockers CPII survey in association with IPSOS, felt the most important factors in buying an investment apartment are location and freehold. Compared with 2016, the importance of location has increased although still some way off 2015 levels. Positive gearing became more important in 2016 while freehold and body corporate fees saw modest increases in 2017.

Body Corporate Fees Overshadow Service. Body Corporate Fees are a major consideration for investors in apartments, followed by which company is providing the Body Corporate Management; with easy access to information about the building a distant-third. Relatively few considered the level of service (16%), building manager (10%) and being on the Committee (10%) to be especially important factors.

When buying an investment apartment, the majority of investors surveyed prefer to use a professional property management company. Most of the rest prefer managing their investment apartment(s) themselves – this has been consistent over the years. In interpreting these answers we have to bear in mind that as the sample was sourced from Crocker’s newsletter recipients, that a bias towards preferring property managers is expected.

Crockers Property Investment Index

This month the Auckland Rental Property Investment Index has improved for the fourth consecutive month, reflecting a considerable increase in the proportion of investors who plan to increase their property investments and only a modest increase in the proportion planning to divest, leaving a net gain. The Auckland Rental Property Performance Index saw a recovery this month. This strengthening is due to a sizeable increase in proportion of investors who believe their property investments will perform better over the next 12 months coupled with no change in the proportion of those who believe their investments will perform worse.

 

 

 

 

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