Photo: RNZ / Alexander Robertson
ANZ's annual property investment survey shows residential property investors want to expand their portfolios after a few years of consolidation and debt reduction.
The survey found that about a quarter of those surveyed plan to buy within six months and 54 percent expect to buy more property in the next two years.
Property Investment Federation executive officer Andrew King said residential property investors were concerned about official intervention to tighten tax and lending rules.
But he said investors were chasing yield and that was sending them into provincial regions.
"Most people are looking for returns. Rather than capital gains, they're looking for cash returns, and they're getting far better returns outside of Auckland, so they're looking outside of Auckland," he said.
Investors expect property values to grow 6.3 percent over the next year, while rents are expected to rise 2.7 percent.
Mr King said if the government or Reserve Bank become too active in trying to slow property investment, it may result in fewer houses being offered on the rental market, which would only exacerbate the housing shortage in Auckland in particular.
Another survey, published recently by the Property Institute, shows Auckland house prices are expected to continue increasing and that the number of properties sold will remain unchanged - or even drop - as demand for new housing stock continues to significantly outstrip supply.
Meanwhile, Colliers International has reported the commercial sector is performing strongly with overseas investor interest helping to drive prices to record highs in Auckland.
The property brokerage company has just sold an Auckland hotel for a record price of more than $55 million.
"We're recording record low vacancy rates in office, retail and industrial, and rents and capital values are increasing," Colliers national director Alan McMahon said.
He said commercial property was not as prone to the emotion seen in residential investment, although "some of the froth" has been blown off the market.
