Rental market softening, Trade Me stats show

The website’s quarterly figures show inquiries from potential tenants are up 38% on the year before.

Brendon Skipper, head of Trade Me Property, said the data indicated a drop in supply, leading to increased demand and price. “We’re seeing a 25 per cent increase in rental asking prices, with the numbers painting the classic picture of over demand and under supply for residential properties throughout the city”.

He said the lack of supply would remain while the city redeveloped.

But Christchurch is the country's only rental hotspot. Demand is down an average of 4% throughout the rest of New Zealand, with supply up 8%.

Rental asking prices were up 3%.

In Auckland, supply was up 28% on the previous year and demand was down 20%, although Trade Me pointed out that was skewed by the 2011 Rugby World Cup. Average rent was down 3%. In the central city, supply was up 42% and average rent down 8%.

Wellington had a similar increase in rental listings and also a 3% drop in price.

Dunedin reported a 10% increase in average rent.

Skipper anticipated an ease in rental prices as demand fell and investors gained access to cheaper credit, noting that “the next rate move could more likely be down than up”.

There was a 16% increase in demand from would-be property purchasers.