Christchurch rents put squeeze on
Soaring Christchurch rents are making the region almost as expensive to live in as the country’s biggest city, the latest Department of Building and Housing New Zealand Housing and Construction Quarterly shows.
Monday, March 10th 2014, 12:00AM
by The Landlord
Christchurch’s average weekly private rents started to close in on Auckland’s in the last quarter of last year.
While Auckland’s average weekly rent for the December 2013 quarter was $450, Christchurch’s crossed the $400 threshold for the first time.
Between the September and December quarters, rents increased nationally by 1%.
On an annual basis, rents are up 4% nationally. Auckland's are up 3% but Christchurch's have increased 10.6%.
Of the Christchurch suburbs, Somerfield reported the biggest increase in rents in the quarter, up 48.6% on the year before.
The report said housing had become less affordable for purchasers in the December quarter in all major regions of the country. Auckland’s affordability worsened by 3.5%, compared to a national change of 3.4%. Canterbury’s affordability was down 2.9%.
Rental affordability improved nationwide by 0.3%. But Auckland's rental market became 0.9% less affordable and Canterbury's was down 1.2%.
Auckland’s rental affordability is now only 5% less than Canterbury’s, compared to 13% less at the start of 2013.
The report said that Auckland’s house prices are now at unprecedented levels, relative to rents.
Over the past ten years, average weekly rents in Auckland have increased from just under $350 to $450, but the average house price has increased from $375,000 to $675,000.
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