Rents soar in Christchurch

The website has released its first Trade Me Property Rental Index.

It shows the median weekly rent nationwide for properties listed on the site was $399 in October, up from $375 in October 2013.

Head of Trade Me Property Nigel Jeffries said it was underpinned by the Christchurch market, where median weekly rents increased 20% year-on-year, to a new record of $510 a week.

A month ago the weekly rent in Christchurch was $465 per week and a year ago it was $425 per week.

Jeffries said: "With 12,000 houses removed from the city and an influx of workers moving in for the rebuild, the rental market remains under pressure in Christchurch," he said. "As new property developments emerge and residential repair work is completed we’d expect to see things settle down – but it hasn’t yet."

He said the rate of increase in rents across New Zealand had been steep over the past three months. "In August, September and October we’ve seen median rents all breach the 6% mark, with September up 7.8% year-on-year. Rents look to be rising faster property asking prices, which indicates things are tightening up for tenants."

Auckland remained "reasonably stable" with a year-on-year increase in median weekly rent of 2% ($460 per week).

The increase in weekly rents in Wellington was strong, up 9.5% on a year ago.

Taranaki’s  median weekly jumped 23% compared to a year ago, landing at record high of $370 per week. "Taranaki is experiencing something of a mini boom off the back of the energy sector in New Plymouth," Jeffries said. "We’ve seen strong price inflation in property asking prices in the region too."

Manawatu/Wanganui delivered the largest fall in median weekly rent, down 11%. "Wanganui has had some bad press from economists and commentators, but if you’re a tenant it is good place to be if you want to tighten your belt," Jeffries said.

The pressure on median rents was strongest for three-bedroom properties, with rents up almost 10% year-on-year. Rent for properties with more than five bedrooms increased by just 1.6%.

Jeffries said the rental market for apartments remained strong, with record highs in weekly rents in Auckland (up nearly 9% to $430) and Christchurch (up 29% to $452).

Looking at the trend over the past five years, Jeffries said most significant rises in median weekly rents had come in the past two years. "Tenants were paying a median weekly rent of $360 a week at the end of 2012, and now they’re having to dig out another $40 more each week."