Rents hit new high in Auckland

After several months of stalled rental prices, the latest Trade Me Property data shows the median asking rent rose nationwide in November.

Excluding Auckland, the median asking rent edged up slightly from $360 per week in October to $370 per week in November, which is a year-on-year rise of 5.7%.

The results from different markets around the country were mixed.

While Bay of Plenty, Northland, Manawatu/Wanganui, and Dunedin all recorded strong rental price rises, other markets showed a decline.

For example, in Christchurch, median asking rents fell for the seventh consecutive month when compared to the same time a year ago.

Head of Trade Me Property Nigel Jeffries said the most action-packed rental market was the Bay of Plenty, where rents rose by $50 per week in the past year.

This was a 15.2% year-on-year increase and a five-year increase of 27%.

However, rents were not going up at the pace of selling price expectations which are up 13% year-on-year, and have seen growth of 28% since November 2010, he said.

Meanwhile, Auckland’s median asking rent was on the rise again.

In October, it eased back slightly to $495 per week from 499 in August and September.

But, in November, it bounced back.

Jeffries said the cost of renting in our largest city hit a new high in November, surpassing $500 per week for the first time.

Auckland’s median asking rent has gone up by 9% over the past 12 months and by 26.6%, or by $105 per week, over the past five years.

Despite the lift, rents were not rising as fast as selling price expectations in Auckland, which were up 16.9% last month, Jeffries said.

“The pace of increase in asking prices for properties for sale is slowing however, and median asking rents are catching up.

“This is especially evident when compared to this time last year, where the increase in asking rents was a far more modest 2%.”