Southern rents soaring

Canterbury reported the strongest year-on-year rental growth in the year to April, with average rents up 12%.

Waikato came in a distant second place, with average rents up 5%, followed by Manawatu/Wanganui and Otago.  Hamilton central reported an average rent for three-bedroom houses of $348 per week in the year to May 31. Palmerston North’s central city average was $289 per week.

Auckland lagged behind with 3.8% year-on-year growth. The city reported a decrease in rents between the December and April quarters, even as house prices continued to rise.

Wellington reported barely any movement in average rent, but Gisborne, Taranaki, the West Coast and Nelson all reported drops in rents compared to the same time the year before. Gisborne’s average rent for a three-bedroom house was $278 per week in the year to May.

The report said larger properties’ rents were increasing faster than those of smaller homes.

The data showed a 5.2% increase nationwide in the average price of four-bedroom properties, up 5.2% to $501 per week.

One-bedroom homes’ average rent increased by 3.4% over the year, to $261. The average rent of two-bedroom properties increased 4.2% to $337.

Christchurch’s rents and house prices were clearly diverging post-earthquake, the report said.

While  house prices have increased, rents have soared and the city’s rents are now just $20 a week off the Auckland average.  The decrease in affordability hit at the beginning of 2012, then slowed slightly last year but is now continuing to grow again. The region is almost 6% less affordable for renters than it was the same time in 2013. Auckland's rental affordability level has remained fairly constant.

Greater Christchurch recorded an average rent of $431 per week, compared to Auckland's $451. The national average is $374 per week, according to the DBH data.