According to the Property Council New Zealand sentiment survey, over the last six months, the majority of respondents found the following:
- Access to capital has been harder.
- Hiring staff has been easier.
- Sourcing building supplies has been easier.
- Obtaining resource consent has had no change.
- Financial challenges have been harder.
Since our survey in November 2023, we have had two main category changes as we have seen hiring staff and sourcing building supplies become easier. Whereas access to capital and financial challenges remain difficult for our members.
Our survey results align with market trends of unemployment rising (a 0.3% increase from the previous quarter) and resource consents for standalone houses falling 23% over the last 12 months, thus reducing competition for building supplies.
Sentiment predictions for next 12 months
Our May 2024 survey asked respondents to look forward and predict the next 12 months of business. The predictions were:
- Access to capital to remain the same.
- Hiring staff to become easier.
- Sourcing building supplies to become easier.
- Obtaining resource contain to remain the same.
- Financial challenges to become harder.
The sector also looked at certainty of pipeline of projects. Where 25% anticipated it would become easier, 24% anticipated it would have no change and 46% anticipated pipeline certainty would become harder of the next 12 months.
Challenges
The top three challenges for Property Council members over the next 12 months were:
- Interest rates
- Cost increases (consenting, development contributions, rates and taxes); and
- Certainty of pipeline of work.
Barriers
We asked what the top three barriers to retrofitting/maintaining buildings. The top three answers were:
- Cost and feasibility of upgrades (66.15%)
- Market willingness to pay (i.e. tenants) (46.15%)
- Cash flow/interest rates (40%).
Closely followed by uncertainty of NBS ratings / seismic standards (38.46%).
A note about our survey
Property Council thanks all members who participated in our May 2024 survey. The results are used to determine the sentiment of the industry, and to discuss the sectors top challenges with decision makers.
We had a balanced split of survey respondents between our industry leaders and industrial members. We had strong representation from our Auckland based members with a balanced split between our Central, Wellington and South Island based members. Respondents included the private sector, public sector, iwi, community housing and education facilities.
Author | Katherine Wilson
As Property Council’s Head of Advocacy, Katherine is tasked with leading our advocacy campaigns at both a regional and national level.
Level-headed and engaging, Katherine has both a law degree from Otago University and an arts degree (majoring in politics) from Auckland University. With solid experience as a policy analyst and advisor in Wellington and Auckland, she has extensive networks and solid analytical skills.
Katherine is hugely dedicated, highly intelligent and committed to ensuring the voice of our members is heard at all levels of governance. She’s also relentlessly positive and enjoys a good chat.
