Despite a third consecutive rise in interest rate to 6%, New Zealand investors continue to laugh in the face of the Reserve Bank as the latest ASB Bank survey shows investor confidence has rebound to near record levels in the second quarter of 2004.
Thursday, August 5th 2004, 9:31AM
by The Landlord
The survey showed 21% of investors surveyed believe investment returns will improve, compared to 19% of investors surveyed in the first quarter of 2004.
Confidence in residential rental property remained stable in the second quarter.
“This reflects the general sentiment that a lot of the surprise and volatility expected by investors has been priced into markets and investors believe the economy is in robust shape,” ASB head of relationship banking James Mitchell said.
"While factors like rising oil prices and the threat of terrorism are of concern to investors, the international equity markets have performed well, and New Zealand companies continue to report strong results.
"Although we have not seen the widespread fear of a residential property downturn realised, we are seeing the gap in confidence between residential rental property and other investment alternatives, such as managed funds and term deposits, slowly narrow,” he added.
