Tony Alexander's November survey highlights trends in property investment
The November 2024 Investor Insight survey by Crockers Property Management and Tony Alexander (pictured above) revealed a subdued interest in purchasing newly built dwellings among property investors.
Based on 330 responses, the survey highlighted a range of trends shaping New Zealand’s property investment landscape.
According to the report, only 22% of landlords are considering purchasing another property within the next year, consistent with trends since July. However, there’s a growing preference for existing properties, as rising costs for developers make new builds less attractive.
Holding vs. selling: Investors prefer the long game
A significant 37% of respondents indicated no plans to sell their properties, while 12% anticipate selling within a year. The proportion planning to hold properties for at least ten years has dipped slightly to 52%, reflecting ongoing uncertainty in the market.
Banks show slight easing in credit access
While investors report that bank credit has become more accessible since July, this sentiment has moderated. In November, a net 14% of investors found borrowing conditions more relaxed, down from a record 22% last month.
Rent increases slow, but tenant search becomes challenging
Investor plans to raise rents have plateaued, with 62% of landlords expecting to increase rents in the next six months – a drop from last year’s peak of 84%. Planned rent increases average 4.4%, down from 6% a year ago.
Finding quality tenants has become a concern, with a net 21% of investors reporting difficulties, attributed to falling net migration and labor market softness.
Top concerns: Insurance and council rates
Insurance premiums and council rates remain the biggest worries for investors, followed by concerns over maintenance costs and rental market dynamics. Worries about property prices have also risen amid global uncertainty around interest rates and economic growth.
Tony Alexander’s latest survey underscores a cautious investor sentiment, with focus shifting toward existing properties and long-term strategies amid evolving market challenges. For a copy of the report, click here.
Also read about Alexander’s recent stories on cautious optimism in business trends and about the NZ property market showing signs of revival.
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