Up, up, up for regional rents

Friday 28 June 2019

Rental demand is outpacing tight rental supply around the country and that has made for record rent rises in many markets, according to Trade Me Property.

By The Landlord

The latest Trade Me Rental Price Index shows that every region in New Zealand saw an annual increase in median asking rents per week in May, with five markets hitting new records.

Those markets were Southland, Taranaki, Northland, Otago and the West Coast but eight regions in total experienced double-digit increases.

It was this regional market growth that drove the country’s median weekly rent to go up by 5.3% year-on-year to $500 in May.

Trade Me’s head of property Nigel Jeffries says it’s uncommon to see year-on-year rental price growth in every region, particularly at this time of year when they’d expect the rental market to cool.

It comes down to supply simply not keeping up with demand around the country, he says.

“The average number of enquiries jumped up 22% on last year as more tenants looked to make a move in May.

“Stock is battling to keep up with this growing demand and we saw a 6.7% decrease in rental properties coming on to the market in May.”

This means landlords can continue to demand top dollar for their rentals, Jeffries says.

“Also, with the new insulation rules for rental homes coming into effect on July 1, we think landlords may be passing this cost onto tenants.”

But while rents outside the three largest cities saw significant growth, the main centres held steady.

The median weekly rent in Auckland has remained at $560 per week for most of the year.

Jeffries says there’s still plenty of interest in the Auckland region but it appears that the number of rentals in the region is meeting demand.

Meanwhile, rents in Canterbury appear to be experiencing a similar trend, hovering around the $400 mark since September last year.

Wellington had a red-hot summer but the city has now seen some cooling in rents as they are down $25 on January’s high to $525 per week in May. 

This means tenants in the capital are a bit better off, Jeffries says. “But we expect to see prices in the capital continue upwards later this year as there simply aren’t enough rental properties in Wellington compared to the demand.”

Comments from our readers

No comments yet

Sign In / Register to add your comment

Property News

A tale of two cities prices

Asking prices in Auckland continue to decline while Wellington’s asking prices are still running hot, according to the latest Trade Me Property Price Index.

House Prices

Pushing up the national average price

The main centres used to drive New Zealand’s market but it was strong provincial markets that contributed to the national average asking price’s rise in July.

Commercial

Join the office space revolution

Flexible working spaces are more than just a fleeting trend and the launch of a new co-working serviced office franchise programme will open up the market to investors.

Mortgages

OCR cut could prompt housing market upturn

The Reserve Bank’s decision to slash the Official Cash Rate (OCR) by 0.5% to a historic low of 1.0% has shocked the financial community, but what could it mean for the housing market?

Site by PHP Developer