Surge in central city rental levels

The latest Crockers report shows rental price levels of two-bedroom properties, in particular, have surged over the past year, especially in Ponsonby and Grey Lynn/Westmere. Remuera has also experienced a major lift since December last year.

The pattern is not the same for the three-bedroom market where levels in Ponsonby, Remuera and the City Bays rose steadily mid to late last year, then dropped back again. Crockers says this is likely to be as a consequence of frustrated house sellers putting their properties into the rental market due to the lack of buyer interest.

Crockers’ marketing manager, Karen Coleman explains historically, two-bedroom properties have more often been rentals than three-bedroom properties.

“We suspect that the two-bedroom rental market has been less affected as it continues to be the core rental market. With the economic pressure on some home owners we are beginning to see more of the traditional owner-occupied dwellings (three bedrooms) joining the rental market.”

In Auckland generally, the report says rental levels have largely held firm on last years figures, with an average year on year increase of around 6% for both two and three bedroom properties. The average year on year increase nationally over the past year has been higher at 8%.