Real estate confidence still weak, survey finds

Some extra weakness is showing up in the residential real estate and investment market, the latest BNZ confidence survey has found.

According to the survey, published today, a net 42 per cent of respondents were confident about the economy in a year's time, compared to 35 per cent three weeks ago.

BNZ chief economist Tony Alexander said that while confidence levels had essentially stabilised at high levels, there was no indication of a traditional correlation between strong sentiment and strong spending.

"In fact it is notable from reading the comments submitted that there has been some extra weakness in the residential real estate and investment market over the past few weeks, and most other sectors remain as patchy as ever," said Alexander.

"There are signs that companies want to hire people again but most appear unwilling to actually seek out staff. Investment plans remain largely on hold and there is caution regarding the strength seen recently in some parts of the construction section."

To read the full NZ Herald article, click here

Posted: 31 Mar 2010

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