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Investing Insights with Tony Alexander: Homes are where the hearts are

Investing Insights

In September’s report, independent economist Tony Alexander finds that interest in residential property exposure continues to grow, while investors ease up on share-buying plans.

  • Tony Alexander

    Independent economist

Published date,29 September 2022

2 min read

Header image for Investing Insights with Tony Alexander. The word 'Sept' is in large pink text in the middle of the image, surrounded by a picture of Tony smiling, a crane lifting a concrete block, and Auckland city skyline.

Each month, Tony surveys over 28,000 Kiwis to find out what they’re investing in and how they’re investing in it. He then analyses their responses and reports on how investment preferences are changing over time. This gives us a look into people’s thoughts on different shares, types of property, active vs passive fund management, whether to use an advisor or an app, which countries to invest in, and much more.

Below, we look at some of the key trends in Tony’s September survey. 

Share-shy?

There’s been a small drop in net plans to boost exposure to equities. In fact, it looks like August’s rise might’ve been an anomaly. The series seems to show a slow downward trend in respondents’ intentions to buy more shares—possibly due to recent market volatility and weakness.

Bar graph showing net intentions of purchasing shares/managed funds and exchange-traded funds falling from a recent peak of 82% in August to 70% in September.

Back to bricks and mortar

Investor interest in the residential property sector is clearly picking up. The gross proportion of this month’s respondents who said they might buy residential investment property rose to 32%, from 29% in August and 25% in July.  

This could be due to stabilising interest rates, some slight easing of bank lending criteria, lower purchase prices, and evidence that first home buyers are returning to the market.

Bar graph showing net intentions of purchasing residential property rising to 32%, from 29% in August and 25% in July.

Demand for shares with exposure to residential property has also jumped. Combined with growing interest in purchasing property directly, as outlined above, this could signal a shift in sentiment towards the recently downtrodden housing market.

Bar graph showing willingness to buy residential sector shares growing fast, from just under 0.8% of all share buyers in July to just under 1.6% of all share buyers in September.

Construction is less constructive

Demand for construction sector shares continues to trend downward. This perhaps reflects deepening concerns about the industry’s prospects amid rising prices, supply constraints and a tight labour market.

Crypto rebrand

Net demand for crypto assets has inched up, despite the price of Bitcoin falling to an almost two-year low. This may reflect improving sentiment towards the sector following the Ethereum merge, which marks a shift away from the energy-intensive model that has previously damaged the reputation of crypto assets. 

Bar graph showing net intentions of purchasing crypto assets creeping up — from 5% of net respondents in August to just under 6% in September. This is down from 16% in November 2021.
A photo showing a hand holding a physical copy of Tony Alexander's Investing Insights report for September, in front of a solid pink background.

Download the report

For a deeper dive, download the full Investing Insights report for September 2022 [PDF, 1.17 MB].

Investing Insights is conducted in partnership with Tony Alexander. All analysis is Tony’s and not influenced by Sharesies.

Ok, now for the legal bit

Investing involves risk. You aren’t guaranteed to make money, and you might lose the money you start with. We don’t provide personalised advice or recommendations. Any information we provide is general only and current at the time written. You should consider seeking independent legal, financial, taxation or other advice when considering whether an investment is appropriate for your objectives, financial situation or needs.

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