Investor confidence in New Zealand rose in the last quarter, bouncing back from its lowest point since the Covid-19 pandemic recorded in the previous quarter.
The previous Investor Confidence Survey from ASB indicated that net investor confidence in New Zealand fell from 9% in the first quarter to just 1% in the June quarter, which was the lowest level since the onset of the pandemic.
However, the latest results show a rebound, with confidence rising sharply to 10% in the third quarter of 2025.
Investor confidence peaked in Auckland at 16%. The South Island registered confidence at 8%, and the lowest level was in the lower North Island at 3%.
The rest of New Zealand saw confidence rise to 7%.
ASB senior economist Chris Tennent-Brown noted that investor confidence had strengthened and markets had rebounded since experiencing volatility earlier in the year.
The drop in investor confidence in the second quarter followed New Zealand’s GDP falling by 0.9%, which was influenced by a “flat” housing market, volatility in the share market, and global economic uncertainty.
“That’s impacting sentiment positively now, but the flat housing market and lower term deposit rates continue to weigh on the mood,” Tennent-Brown said.
ASB has also found that although most still consider their own home the best investment overall, this perception is changing. The proportion of people who viewed a home as the top investment dropped to 15%, the lowest level recorded since ASB started surveying in 2015.
“While property is still on top, it’s with much less conviction than in the past,” Tennent-Brown said.
“New Zealanders are still looking for signs of recovery in the housing market, but it’s clear that confidence in this traditional favourite is being challenged.”
Respondents under 30 were distinctly focused on alternative investment options, especially the share market, where confidence surged notably from 13% to 21% in the last quarter. This was the investment area where Gen Z exhibited the highest confidence.
Managed investments remained stable overall at 14%, ranking just behind KiwiSaver, which surpassed rental properties and term deposits in perceived returns. Public shares also gained popularity, with confidence rising to 12%.
Rental properties, term deposits, and bank savings accounts have remained consistent but are no longer viewed as particularly standout investment options.
Global political instability or uncertainty was once again the chief concern for investors, with 90% identifying it as a major factor influencing their confidence.
“Looking ahead, the overall message is one of cautious optimism,” Tennent-Brown noted.
“While confidence has edged up, the underlying drivers of uncertainty, like global events, policy changes, and a sluggish property market, remain.”
Tennent-Brown explained that although sentiment has improved compared to the previous quarter, it remains far from optimistic.