Rental property’s appeal slides further
The survey also found a sharp fall in how investors view rental property as a return-generating asset, with just 10% now nominating it as offering the best return, down significantly on the prior quarter. That sentiment lines up with the broader market backdrop — QV data shows the average New Zealand house price fell 1.2% over the past year to $898,799 in July 2026.
Tennent-Brown linked the decline directly to the property market’s prolonged flat patch, saying investors whose main holding was a rental property were significantly more likely to report being very concerned about the local political outlook, “likely seeing potential for change in the rental market affected by local policy.”
Overall net investor confidence fell five percentage points over the quarter to 1%, matching the level last recorded in June 2025, when Trump-era tariff policy first took hold.
Tennent-Brown said the distinction between concern and action is one worth holding onto.
“The survey tells us people are concerned, but they are not necessarily acting on that concern. That is a sensible distinction,” he said. “Staying invested through periods of uncertainty can help investors participate in market gains, while a long-term plan provides a stronger foundation than reacting to any political cycle.”