Getting better all the time, can't get much worse...

Christchurch property players are the most optimistic in the country, at a net positive 43%.

Christchurch’s optimism can be attributed to the fact most respondents believe things cannot get much worse over the next year, says Colliers director of research Alan McMahon.

Otherwise, confidence in the property market remains volatile.

Property professionals remain positive overall, with a net 10% optimistic, but this is slightly down on recent months.

Mr McMahon says various economic indicators paint a picture of a stalled recovery in New Zealand, which is influencing the mood of investors.

The negative indicators include the lowest number of building consents in 15 years.

But he says the market has achieved stability and is awaiting growth. Property syndications are proving popular with investors and the low cost of debt is encouraging.

Queenstown’s commercial property investors are the second most optimistic, at 38%.

Auckland is in third at 23% optimistic but has experienced a significant fall in confidence from 36% in March, which Mr McMahon attributes to nervousness about the national and global economic situation.

Industrial investors continue to be most optimistic, with Christchurch industrial investors the most bullish at 51%.

Office investors are 28% optimistic in Auckland, but in Wellington office investors are the country’s most pessimistic at negative 25%, which can be largely attributed to earthquake strengthening concerns and uncertainty around public sector cuts, Mr McMahon says.

“The Wellington office market is a game of two halves, with very low vacancy in A grade offices and much higher vacancy rates in B and C grade premises.

“Auckland is better balanced at the moment but is likely to reflect the same trends as Wellington in the medium term, with an upcoming increase in vacancy levels in secondary stock.”

The effects of earthquake strengthening requirements will likely widen the performance gap between prime and secondary stock in Wellington and Auckland, Mr McMahon says.

The survey results were compiled from 4310 responses.