Landlords hit rental walls
Wednesday 4 February 2004
The bottom has fallen out of Auckland's rental housing market, going against the national trend of escalating rents.
By The LandlordAcross the city, rents are plummeting as landlords drop their prices rather than risk losing tenants.
Reserve Bank Governor Dr Allan Bollard has been warning investors against buying residential property for months. On Thursday he showed he meant it by increasing the official cash rate.
Since the housing boom took hold about three years ago, many people have clamoured to get into rental properties, often as a form of saving for retirement.
There is concern now these investors could suffer.
Some Auckland agents have a glut of houses and units to let. Despite solid advertising, the agents' phones are staying quiet. Tenants who do bother to turn up for appointments criticise the properties available and demand lower rent.
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There’s a major housing market downturn coming and it’s likely to reduce the number of investors in the market, according to ANZ economists.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.