Almost two-thirds of Kiwis have some level of confidence in the New Zealand economy, with faith in domestic financial markets narrowly edging confidence in property.
Advance findings from Kiwi Wealth’s inaugural State of the Investor Nation, a comprehensive report looking at perceptions of wealth and wealth creation, show that 64% of Kiwis are somewhat or very confident that the domestic economy is tracking well.
State of the Investor Nation 2019 – advance findings:
Of more than 2000 respondents to the Kiwi Wealth survey, 60% expressed confidence in domestic financial markets, closely followed by confidence in New Zealand’s property market at 57%. Confidence in global financial markets trailed at 43%.
“The survey results suggest Kiwis like familiarity when it comes to confidence, hence the skew to being more confident on domestic factors compared with global,” says Joe Bishop, Kiwi Wealth General Manager Customer, Product and Innovation.
“There are differences within the population, however. For instance, while overall confidence in global financial markets was the lowest of the factors were surveyed, 55% of younger people (aged 18-34) were confident in global markets versus just 37% of people aged 55 and over.
“That possibly reflects the increasingly global perspective of younger New Zealanders, as well as a response to the frustration they are having getting into the property market here.”
Although younger people are increasingly shut out of property, real estate ownership continues to be a love affair for older New Zealanders, says Mr Bishop.
“There’s been strong and sustained growth in property values throughout most of the country for the best part of a decade. For a group of people who may well have been stung by other investments – the 1987 crash, for example – property has been both a safe bet and a star performer in building wealth.”
Wellingtonians were most confident about the New Zealand economy in general and in their conviction that house properties in the region would continue to climb.
“Given that people on lower incomes are among the least confident about their ability to build wealth, people in Wellington are almost certainly much more confident given they command the highest average incomes in the country,” says Mr Bishop.
“There’s been a cooling in house prices in centres such as Auckland and Christchurch, but things remain pretty buoyant in the capital. More than 90% of Wellington respondents expect house prices to continue rising, as opposed to 72% in Auckland and 77% in Canterbury.”
The data has been released in in advance of Kiwi Wealth’s launch of its first State of the Investor Nation report.
The full report will be published on Tuesday, May 7.