Tenants paying 5% more

It has released the latest Trade Me Property Rental Index, which showed a national median rent of $400 per week.

Head of Trade Me Property Nigel Jeffries said rents were not increasing quickly: “There’s less price pressure on tenants and a healthy supply of properties for rent in many areas. Although the weekly rent is holding steady at $400 per week, the year-on-year increases are trending down.”

He said the rental sector was quietening, at the same time as asking prices for residential property sales were emerging from a winter slump.

Since 2009, the median weekly rent has risen by more than 21%. This compares with a 28% increase in average asking prices for residential properties over the same period. 

Three regions recorded year-on-year falls in weekly rent: The largest was in Manawatu/Wanganui where it fell almost 10% to $230 per week.

The West Coast continues to be weak, down 4% on a year ago to $240 per week. Otago landlords have enjoyed strong median rent rises of around 6% most of 2014, but median rents slipped 1.6% this month.

Twelve regions saw median rent increases, led by Taranaki which is up 16% to $350 per week – tenants are paying $50 more than they were a year ago. The top of the South Island is also showing increased activity with both Nelson and Marlborough recording new highs of $360 per week and $318 per week respectively.

Jeffries said Christchurch’s rental market was still tight, and although the median weekly rent of $450 had not budged since October it was up almost 6% year-on-year.

Auckland was also unchanged on $460 per week – but still at a record-equalling high. Jeffries said there were hints that the rental market was easing, with a 2.2% increase compared to November last year.

In Wellington there was a 2.7% rise in weekly rents, underpinned by a 10% lift for medium-sized houses to $440 per week.