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CPII Survey October 2017
27 October 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:
- 33% of investors believe that National had the best policies to improve housing affordability; in comparison, 23% preferred Labour’s policies on housing affordability
- 68% of investors were aware of the Special Housing Areas that had been designed to increase affordable housing stock, but 48% noticed no change to the housing market in the Special Housing Areas, while 19% noticed slower increases in rents, and 15% noticed smaller increases in house prices
- The Auckland Rental Property Investment Index has decreased for the second consecutive month, reflecting a continued increase in the proportion of investors planning to reduce the size of their property portfolios
Special Housing Areas
This month in our latest CPII survey in association with IPSOS, we asked investors about the Special Housing Areas (SHAs) that were established in 2013. The aim of SHAs is to fast-track the development of additional Auckland housing, with a special focus on affordable housing that can be bought by people who earn the average Auckland wage. Auckland Council data shows 3,157 homes were completed in SHAs by the end of June this year, including 580 ‘affordable homes’.
More than two-thirds of investors were aware of Special Housing Areas, while 32% were either unaware of not sure.
Nearly half of investors noticed no change to the Auckland housing market in response to this addition of extra housing stock, while 19% noticed slower increases in rents, and 15% noticed smaller increases in house prices.
We asked the investors in the sample what factors they believe contributed most to recent
increases in Auckland house prices. The large majority of investors in the sample (78%) consider
‘more people in Auckland’ to have contributed to the increase in house prices, while ‘not
enough housing stock’ and ‘low borrowing costs’ were also considered to be contributing
factors to this increase (56% and 41%, respectively).
We asked the investors in the sample which political party they believed had the best policies
to improve housing affordability in Auckland. Around a third of investors in the sample believe
that National had the best policies to improve housing affordability; in comparison, 23%
preferred Labour’s policies on housing affordability. Notably 20% of investors were undecided,
while 17% preferred none of the political parties’ policies.
Crockers Property Investment Index
This month the Auckland Rental Property Investment Index has decreased for the second consecutive month. This reflects a continued increase in the proportion of investors planning to divest and declining interest in investors to increase the size of their property portfolios.
The Auckland Rental Property Performance Index has increased, due to an increase in the proportion of investors who are expecting ‘better’ returns on their investments over the next year, coupled with a slight decrease in the proportion of those who feel their investments will perform ‘the same’.
This research, undertaken by Ipsos on behalf of Crockers, surveyed members of the Crockers Market Research subscriber’s database during October 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