Auckland property market not so gloomy

6 March 2008

Auckland property market not so gloomy

International property adviser, DTZ, has released its annual overview of the Auckland property market with findings suggesting it's not all gloom and doom for the property industry as some have suggested.

DTZ head of research, Ian Mitchell, who presented the comprehensive overview this morning at a business breakfast, stated that despite a global slow-down New Zealand occupier markets are relatively sound in large part due to sound occupier rates and a strong economy that continues to grow albeit at a slower rate.

"While New Zealand is not immune to global trends, the New Zealand situation differs from that of America and the United Kingdom who have seen thousands made redundant in the finance industry as a result of the sub-prime crisis," says Ian Mitchell.

Ian Mitchell also noted that key drivers on the horizon for the property industry will be the combination of the right sizing of the second tier lending market, a slow down in household discretionary spending, and lower growth in business profits.

"Anecdotal evidence also suggests that overseas corporates are deferring significant commitments which could slow future development activity," says Ian Mitchell.

-ENDS-

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