2014 Property Market Report
We are pleased to bring to you the 2014 Property Market Report. Economic Momentum from last year seems to have been maintained into 2014.
We continue to receive reports of improving economic performance. For example, we are told our employment levels are at the highest on record. That hasn’t resulted though, in any meaningful drop in unemployment. You will have heard the much overstated “rock star economy’ description given to our economy. We suggest we are far from that in a real sense but in general our terms of trade and other indicators remain strong.
But just to provide some sense of balance; “The latest data on business performance provided by over 30,000 businesses in mid-2013 was released by Statistics NZ in April 2014, showing that despite the rhetoric on better conditions ahead, the business environment is tough”
And from a recent Colliers survey; Our latest investor confidence survey slipped back ever so slightly in the first quarter of 2014 to a net positive 28% but from a record net positive 31% recorded at the end of 2013. The slight dip was a result of Cantabrians becoming less bullish than in previous surveys, most likely due to expectations aligning with rebuild momentum. So, once again, despite apparent improving conditions the recovery remains in a prolonged state and whilst nearly all indicators are positive, consumers and the market appear tentative. Further we’d comment that much of our near economic fortunes include the Christchurch factor. The rebuild will continue for many years distorting the economic indicators.
Anecdotally we’d agree that excluding the construction sector considerable struggle remains in the prevailing business sector. Importantly immigration is likely to continue to play a positive role in our growth.