Rents fail to keep pace with house prices
Monday 26 January 2004
Rentals are not keeping pace with the steep rise in Wellington house prices, leaving some landlords out of pocket.
By The LandlordThough house prices in the Wellington region have risen about 12 per cent in the past year, rents have not increased at the same rate, rental agencies say.
The number of rental properties available meant tenants could pick and choose, keeping a lid on rents.
Wellington property investor John Perera said there was no indication that rents in the city would rise.
"With all the apartments being built, it's taken the pressure off the market," he said.
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Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.