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CPII Survey July 2017

PRESS RELEASE

26 July 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:

  • 59% of investors surveyed had 1 or 2 residential investment properties and just 6% owned more than 8.

  • The majority of property investors regard their residential investment portfolios to be part of their retirement savings plan (up 5-points to 79%), while a sizeable proportion consider their property investments as general nest-egg savings (48%).

  • The Auckland Rental Property Performance Index has improved this month, following a sharp decline in June. This improvement is mostly a result of an increase in the proportion of investors who feel that their investments will perform ‘the same’ over the next year.

Most residential property investors have only a few properties and are saving for retirement

As seen in previous waves, the majority of property investors regard their residential investment portfolios to be part of their retirement savings plan (up 5-points to 79%), while a sizeable proportion consider their property investments as general nest-egg savings (48%). There has been a substantial increase in the proportion of investors who chose property over other investments for its tangibility since Jul ‘16 (up 16-points to 68%), which leads over other considerations like safer returns (36%), helping others (30%) and better returns (29%).

More than two-thirds of investors stated that their residential property investments provide them with a supplementary income (up 15-points from Jul ’16). The proportion for which investment property is the main source of income has fallen substantially (f rom 25% to 13% this year). The majority, 59%, had just one or two residential investment properties, and just 6% had more than eight.

Crockers Property Investment Index

This month the Auckland Rental Property Investment Index has softened, reflecting a decrease in the proportion of investors who are planning on making ‘no change’ to their portfolio along with an increase in the proportion of investors planning to reduce the size of their property investments. The Auckland Rental Property Performance Index improved this month following a sharp decline in June. This is a result of an increase in the proportion of investors who feel that their investments will perform ‘the same’ over the next 12 months coupled with a decrease in the proportion who feel their investments will perform ‘worse’.

Investment Likelihood

Interest in ‘other residential’ has increased substantially this month, to be just below the high seen in Sep ’16. Meanwhile interest in Central CBD apartments and Commercial property has softened in July.

 

Research Details

This research, undertaken by Ipsos on behalf of Crockers, surveyed members of the Crockers Market Research subscriber’s database during July 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 | kims@crockers.co.nz | 09 623 951
Jonathan Dodd | Research Director, IPSOS Ltd | jonathan.dodd@ipsos.com | 09 538 0500

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