Confidence up for commercial and residential property in Hawke's Bay, says Colliers

GOING UP: Confidence in both commercial and residential property is up. PHOTO/DUNCAN BROWN

Confidence is growing in the Hawke's Bay commercial and residential property markets, according to the Colliers International survey for the first quarter of this year.

Hawke's Bay was the only area outside of Wellington to see confidence grow across both commercial and residential markets in the first quarter of this year.

The Commercial Property Investor Confidence Survey showed net confidence in the Hawke's Bay market was at 13 per cent, up 1 point from the last quarter.

Confidence in the residential property market was at 41 per cent, up from 38 per cent in the last quarter of 2016.

Colliers International Hawke's Bay sales manager Kerry Geange said confidence was reflected in the strong levels of inquiry from investors and owner-occupiers, particularly in the industrial sector and larger-value commercial investments.

"This has also translated into developer confidence, with the construction of new industrial stock to meet the increasing demand for quality industrial properties," Geange said.

Growing investor interest was coming from outside the region, attracted by competitive yields and a safe economy.

The leasing market offered a good snapshot of overall confidence, with more than 20 leases this month "which is a sensational result for our landlords".

"The overall positive outlook appears set to continue with the announcement of thousands of new residential sections to meet buyer demand and the strength in the horticultural and tourism sectors."