Super City rents up, supply down

Barfoot & Thompson’s rental data for the July to September 2017 quarter shows the average weekly rent for an Auckland property rose by 4.7% to $542 from $520 in the same period last year.

The agency’s director, Kiri Barfoot says that increasing costs for landlords and the increased risk of owning a rental property in 2017 are both major contributions to rent increases.

But she says she wouldn’t expect Auckland rents to flatten out as house prices in Auckland have.

“Just as Auckland rents didn’t increase at double-digit rates along with house prices last year, or the year before.”

The data also shows that it was Auckland’s central suburbs that saw the biggest increase in the average weekly rent.

It was up by 6.2% to $584 in the July to September 2017 quarter, as compared to $550 in the same period last year.

Barfoot says that demand for rentals in Ponsonby, Grey Lynn, Mt Eden, and all the old Auckland City suburbs west of the Southern Motorway is strong.

“The area boasts short commutes into the city, and the properties often have outdoor space, parking, and are closing to shopping, dining and entertainment areas.”

Recent rental data from Trade Me Property adds further weight to the rent increases revealed in Barfoot & Thompson’s data.

It shows that Auckland’s median weekly rent rose to $525 in October, as compared to $520 in September.

This equates to a 2.9% year-on-year increase in the city’s median weekly rent from $500 in October 2016.

Head of Trade Me Property Nigel Jeffries says the number of available rentals in Auckland has dropped by 35% since last October and that is now starting to have an effect on prices.

“Rents in Auckland have remained relatively steady for two years, holding around the $500-$530 mark.

“But if this shortage of rental properties continues we can expect to see new record rental prices in the City of Sails.”

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