Investor confidence up, but probably not for long - ASB

housing
Housing is still seen as the best investment. Photo credit: Getty

Confidence amongst Kiwi investors has lifted over the third quarter.

The latest ASB Investor Confidence Report shows net investor confidence is now at 19 percent.

Senior wealth economist Chris Tennent-Brown says it has only just recovered from the dip last quarter.

"We've seen a lot of share market volatility at the start of the year, and then a pretty solid period of returns, which is behind this boost in confidence. But now of course we're seeing a bit more volatility in share markets, so we'll probably see confidence pull back a little bit."

Twenty-three percent of respondents still view their homes as the best investment, despite stagnating prices in the bigger markets.

"The changes to rules regarding property (including the bright-line extension, the Overseas Investment Amendment Bill, and other potential changes) are targeting investments rather than the main family home, and that is a logical reason for the divergence we are seeing between confidence in owner-occupied and rental properties," said Mr Brown.

KiwiSaver is now viewed as the best bank return product for return on investment - 13 percent - ASB saying it's overtaken term deposits - 11 percent.

Mr Tennent-Brown says Kiwisaver confidence is pleasing.

"It's been around for a long time… the good returns people have been getting out of KiwiSaver are shining through."

Mr Tennent-Brown says he's surprised property confidence hasn't dipped.

"There's a lot of uncertainty for property at the moment, and in some ways what's been surprising is overall, it's held up in terms of very high levels of confidence."

Confidence increased in every region, except Canterbury.

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