Invercargill property boom levelling off
Wednesday 14 July 2004
Rents in Invercargill have come down as much as $20 a week in the past few months, as the city's property boom shows signs of levelling off.
By The LandlordProperty investors and real estate agents spoken to by The Southland Times yesterday confirmed the figures, although their explanation for the drop in rents differed.
Southland Property Investors Association president Greg Stephens said an increase in the number of homes and flats for rent had helped lower rents.
"It comes down to supply and demand.
"Tenants have better choice.
What that will do is drive down (rents), and that's being reflected in the market." Rents were lower in all areas of Invercargill, Mr Stephens said.
The rental property boom had been driven by various factors.
"You've got the free-fees at SIT, the upgrading of the (Tiwai aluminium) smelter and the hospital, and (Fonterra) Edendale." Association past president Jon Havenaar said he had been forced to drop the rent on a two-bedroom property he owned by $15 a week, to $115, to secure a tenant.
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