Property

Rent increases muted

Auckland was the only part of the country with any significant increase in rents last year, new Crockers research shows.

Thursday, February 05th 2015

It has released data showing the performance of average rents around the country in 2014.

Auckland was well ahead of the other regions, with rents up 6% for both two- and three-bedroom homes, ending the year at $422 per week and $555 per week respectively.

Most other regions’ average rents were flat through the year. Christchurch’s experienced a dip in the final quarter.

Christchurch recorded the biggest increase in rents compared to 2011.

Over that period, its rents increased 31%, or $104, for three-bedroom properties and 33%, or $87 for two-bedroom homes. Over the same four years, Auckland's three-bedroom homes' average rent increased from $480 to $537 per week, a third of that growth in the last year.

Since 2013, Christchurch has recorded 7% to 8% average rent growth for two- and three-bedroom homes.

Crockers said the average rental return for investors, as calculated by the yearly rental income divided by the median house price, was lowest in Auckland, at 4%.

Dunedin led the table with 7.5% yield, followed by Wellington and Christchurch on 4.8%.

Crockers said Christchurch's rental yields looked to be strengthening while Auckland's weakened.

 

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