New Zealand investors ended 2006 in a buoyant mood, according to the latest quarterly ASB Investor Confidence Report.
Wednesday, January 24th 2007, 2:29PM
by The Landlord
Overall investor confidence rose in the fourth quarter of 2006, up five points to a net 24%. This equals the highest level of confidence recorded in the eight years of the ASB survey.
The main cause for the rise in confidence was a drop amongst people who had previously said they thought their investment returns would be worse than last year (down from 12% to 8%). Those who expected their net return from investments to be better in the next 12 months rose marginally one point to 32%.
“At the start of the year we were at a historically low level of confidence, around 9%,” said Jonathan Beale, head of investment services, ASB Investments. “Through each quarter of the year there was a steady increase, mainly as investors’ belief that their returns would either stay the same or increase improved.”
Residential rental property remains the highest ranked asset class vis-à-vis returns, despite continued debate about the direction of the housing market and a large number of mortgages requiring to be re-fixed in the final quarter of 2006 – up slightly to a net 20%.
In the fourth quarter all respondents who owned a home were asked if they considered that property as part of their investment portfolio – 75% said yes.
