Bulls and bears on property outlook

By Christine Nikiel

Friday 7th June 2002

New Zealand's property investors are picking improvements in all sectors for the next six months, according to Jones Lang LaSalle's latest Investor Sentiment survey but property analysts are not as bullish.

JLLS managing director Don Harrington said a resilient economy and stable or improving property indicators over the past 12 months were the most likely reason for the increase.

"The retail property indicators have been positive over the past six months with low vacancy rates or stable or firming rents and yield," he said.

UBS Warburg property analyst Stuart Graham said rising interest rates would probably take the top off the property sector in the next 12 months in terms of listed stock.

"I would not expect the sector to do as well over the next year as it has this year because of rising interest rates," he said.

CB Richard Ellis director of commercial sales Kevin Richards said the 0.75% increase in interest rates forecast for the end of the year was a concern, as was the upcoming election - a time when people put off decisions.

The America's Cup was also a worry for the real estate market he said, as people would be distracted and "take their eyes off the ball."

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