Rents creeping up: Barfoot
Landlord returns are dropping as rent rises fail to keep pace with the increase in Auckland house prices, Barfoot and Thompson figures show.
Monday, November 18th 2013, 12:00AM
by The Landlord
The agency said the average rent for a three-bedroom Auckland property in September was $455 a week, up from $446 in May.
“The rise of only 2% in the six months will come as a surprise to many,” said director Kiri Barfoot.
“The prevailing belief is that property investors are simply passing on higher property costs to tenants, but this is not showing up in the figures. Rents are increasing, but the rate of increase is lagging well behind house price rises.
“It suggests landlords are placing great store in retaining quality tenants taking a long-term view of the return they can achieve on their investment.”
Three-bedroom homes had the largest rent increase.
The average rent for four-bedroom homes increased in the six months by 1% to $577.
For one-, two- and five-bedroom homes, average rents have increased 1.6%.
The most expensive location in which to rent a three-bedroom home is the Eastern Suburbs, where the average rent is now $541.
The least expensive location is Franklin and rural Manukau, where the average rental cost is $354.
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