CPII Survey September 2017
27 September 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:
- 7% of Auckland-based property investors surveyed are planning to leave Auckland within the next year to move elsewhere within NZ
- Most investors felt that they would ‘retain their property for rental income’ should they need to move away (64%, up 6-points since June 2016)
- The Auckland Rental Property Performance Index has decreased; this movement reflects an increase in the proportion of investors who feel their portfolios will perform ‘the same’ and a decrease in those who feel that their investments will perform ‘better’
Intention To Move Out Of Auckland
We asked: Some New Zealanders are looking at emigrating to countries like Australia or shifting to other parts of NZ. Which of the following applies to you? We compared responses to similar questions asked in June 2012, July 2015 and June 2016.
82% of respondents to this month’s survey plan to stay in Auckland over the next year – this has increased slightly compared to previous years. A relatively small proportion of Auckland property investors are planning to relocate elsewhere within New Zealand (7%, down 3 points since June 2016), while only 2% are planning to move overseas within the year – on par with the results seen in previous waves. For the few that plan on leaving Auckland, the main reasons are ‘quality of life’ (64%), ‘family reasons’ (36%) and ‘housing affordability’ (27%).
Of the total sample, 98% live in New Zealand and own property. We asked them: “If you did move away from your current city, even if you remained in NZ, what would you most likely to do with your current residential property?” Perhaps not surprisingly, given the nature of the Crockers database, the majority (64%) of respondents felt that they would ‘retain their property for rental income’ should they need to move away, up 6 points since June 2016, while only 25% would ‘sell’ their property (down 4 points since last wave).
We asked: “If you were to move out of your current city and you kept your current home for rental income, who would you use to look after the property?” The majority (75%) claim they would ‘use a professional property management company’ – this figure has grown 10 points since 2016 and is currently at its strongest since we first asked this question in June 2012. Compared to 2016, fewer investors would be willing to ‘manage the investment property themselves’.
In 2017, we included an additional question to gauge likelihood of investment in Australian property in response to the high net immigration we are seeing. We asked: “How likely would you consider buying an Australian investment property, e.g. on the Gold Coast, if the returns looked favourable?”
Most investors stated that they were ‘unlikely’ to consider purchasing an Australian investment property (81%). Despite this, 5% stated that they were ‘very likely’ to do so and 14% stated they were ‘somewhat likely’ – suggesting that there is appetite among a considerable number of investors to grow their portfolios across the Tasman. We examined whether there were any differences between sub-groups such as value of Auckland property investments, investment plans and expected investment performance over the next year. However, there were no substantial differences.
Auckland Rental Property Performance Index
This month the Auckland Rental Property Investment Index has decreased, but remains on par with the Performance Index. This reflects an increase in the proportion of investors planning to ‘make no changes’ to the size of their property portfolio, coupled with a corresponding decrease in those planning to ‘increase’ their investment, resulting in the decrease shown below.
The Auckland Rental Property Performance Index has also decreased, following two consecutive months of improvement. This movement reflects an increase in the proportion of investors who feel their portfolios will perform ‘the same’ and a decrease in those who feel that their investments will perform ‘better’.
This research, undertaken by Ipsos on behalf of Crockers, surveyed members of the Crockers Market Research subscriber’s database during September 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 | email@example.com | 09 623 9515
Jonathan Dodd | Research Director, IPSOS Ltd | firstname.lastname@example.org | 09 538 0500