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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