Rents on the rise

Trade Me Property’s Rental Index shows median weekly rents in both Auckland and Wellington were up in October – although the national median remained unchanged at $440.

The national median rent has now flatlined at the same price for the last four months, although it is up by 4.8% year-on-year.

However, Auckland’s median weekly rent went up by $10 to $510 in October.

Head of Trade Me Property Nigel Jeffries said the increase was the first move in the city’s rents since April and lifted them above the $500 mark they had been stuck on.

“Auckland’s rents are up just 3% on last year so landlords won’t be celebrating, but it’s significant to see rent expectations tick up for the first time in quite some time.

“The average annual rent cost for a typical Auckland property is now $26,520 – still a lot less than the cost of most mortgages in the city.”

Wellington’s median rent rise was more substantial than that of Auckland and comes on the back of a slight fall in September.

The capital’s weekly median rent jumped back to $420 in October.

Jefferies said this was not a record high, but it was enough to deliver an annual increase of 7.7% on this time last year.

“The Wellington market has seen strong growth since July and shows no sign of slowing down as the market moves into summer and the competitive New Year renting period.”

Around the rest of New Zealand, median weekly rents in Southland, Marlborough and Bay of Plenty were all up in October, which meant they turned in double-digit year-on-year growth.

Jefferies said that Marlborough and Southland both hit record weekly rents of $350 and $250 respectively as the juggernaut of the rental market – the Bay of Plenty – kept rolling on.

“Median weekly rents in the Bay are up more than 15% on this time last year to $410, and just $10 less than Wellington. The growth in the Bay of Plenty has been phenomenal.”

Four regions experienced year-on-year dips in their median weekly rents.

They were the West Coast (down 6% to $235), Canterbury (down 4.8% to $400), Taranaki (down 2.5% to $350), and Gisborne (down 1.8% to $280).

However, median weekly rents in Christchurch seem to have found their post-rebuild sweet spot, Jeffries said.

“Rents have steadfastly remained at $400 for six months and are the same as they were three-and-a-half years ago.”