Slow rise for Auckland rents
Wednesday 8 August 2018
Auckland rents are rising at the slowest pace in years, according to Barfoot & Thompson’s latest quarterly rental market update.
The cost of renting a typical three-bedroom property* in Auckland between April and June was up by 3.5%, or $19 a week, as compared to the same period in 2017.
But Barfoot & Thompson director Kiri Barfoot says it is the smallest percentage increase in weekly rents they have seen in at least the last two years.
It is also the first time the average increase has dropped below the $20 per week mark, she says.
“This time last year, the average increase in weekly rent on a three-bedroom home was more like $22, and in 2016 it was as high as $24.”
The downward trend seen in the first two quarters of 2018 follows a period of steady rises of around 4.3% per quarter year-on-year throughout 2017.
Over the course of 2015 and 2016, there was much higher increases of 5.0% or more.
Barfoot says the average weekly rent for all property sizes is edging downwards in keeping with the three-bedroom example.
It is up by 4.0% to $599 on the same period last year but that compares to other recent year-on-year quarterly increases of between 4.4% and 4.8%, she says.
“We are likely seeing the beginning of a ‘new normal’ in rental price trends as landlords strike a fine balance in their pricing in the face of rising operating and compliance costs.”
However, one-bedroom properties bucked the trend, with continued pressure on weekly rents and a quarterly year-on-year of 4.6%.
West Auckland was the only region of the city to experience price increases above 5.0%, which reflects the growing popularity of the area among renters.
*Three-bedroom properties make up the bulk of the agency’s 16,000 strong portfolio and so are used as a standard example.
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