Happy rental tidings for landlords

New Zealand’s median weekly rent hit a record high of $445 in November, as compared to $440 in October, according to the latest Trade Me Property Rental Index.

The increase, which was the first in four months, left the median weekly rent up 3.5% year-on-year.

Head of Trade Me Property Nigel Jeffries said it had been a subdued year for the rental market, but the November jump was probably the first of the typical summer increases.

“Rents almost always increase in January as rental stock hits the market and landlords seize the chance to reassess the value of their rental property.

“We’re seeing some decent median weekly rent jumps already, particularly in Auckland and Wellington, and we suspect more increases are imminent.”

While the Super City and the capital rental markets turned in some positive results in November, once again it is Bay of Plenty landlords who received the best news.

Not only was the Bay of Plenty’s rental market the standout among the regions, but it returned the biggest year-on-year increase in median weekly rent in the country.

The region’s median weekly rent saw a double-digit increase of 10.5% on last year, which left it at $420 in November.

It is continuing to rise steadily too.

Last month the Bay of Plenty’s median weekly rent was $410 and, over the past two years, it has gone up by a very healthy 27%.

Wellington saw the second biggest year-on-year growth in median weekly rents.

They rose by 9.5% in the past year, taking the median weekly rent to $433 in November.

Jeffries said median weekly rents in the city have been rising for most of the year, but the market also saw a very strong end to the year.

The increase accelerated from 2% to 3% early in 2016 to closer to 10% in the past five months, he said.

“Wellington’s rent prices are very cyclical – they build in October each year, and peak in January before a mid-year plateau.

“October and November have already been extremely strong so we’re expecting to see a pretty strong peak come January.”

Auckland’s median weekly rents also rose in November.

They climbed to $520, as compared to $510 in October, which was a 4% year-on-year increase.

Jeffries said that it was the second consecutive $10 jump in Auckland after months of stagnation.

This means the market is coming to life and landlords are finally feeling like they can pass more costs on, he said.

“The Super City’s median weekly rent hasn’t been this high since April this year, and while it’s fluctuated throughout the year the last three months have been strong.

“There are signs there that a record high is not far away.”

Around the rest of the country, median weekly rents were up solidly in most markets.

The only two exceptions to the trend were Gisborne and Canterbury where median weekly rents were down by 14.3% and 4.2% respectively.