Property investment loses appeal, except in Auckland

The latest ASB Investor Confidence Survey shows investors are becoming more cautious because of the looming crisis in Europe.

But while term deposits beat housing as the best investment throughout the rest of the country, the survey showed Auckland investors were still firmly in the thrall of their love affair with property.

ASB Head of Wealth Advisory Jonathan Beale said: “The ASB Investor Confidence Index slid four points to a net 8% over the three months to the end of June, with spooked investors wary of the potential for disruption in Europe. In June alone, investor confidence plunged 12 points to hit zero, the lowest level in three years.

“Over the quarter Greece held two separate elections and narrowly avoided expulsion from the Euro.  Although the situation in Greece appears to have stabilised following the June 17 election, concern about debt levels in Spain continues to rise. Investors appear to have taken this news to heart, with more believing returns will worsen over the next 12 months.”